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Posted Mon, 22 Jan 2024 21:45:15 GMT by
I have three questions, related to the fact that I paid for legal fees in one lump sum as my shares were company options so they were effectively bought and sold in the same transaction. Firstly, lets assume the legal fees for the transaction of buying + selling shares was £150 (made up value). 1) On the "Your ownership of the shares (continued)" page, for the question "How much did you pay in costs when you got the shares?" what should I enter here? I've put £0 so it doesn't get double counted later on. 2) On the "Your transfer of the shares (continued)" page, for the question "How much did you pay in costs when you stopped owning the shares?" what should I enter here? I've put £150 (e.g. the full legal fee). 3) On the "Your reliefs" page, for the question "Did you claim any Capital Gains Tax reliefs in your calculation?", what should I enter here? I've put "No" as I already entered the legal fees on the previous page under 'incidental costs of the disposal' and there's no other relief to apply. Thank you very much in advance.
Posted Thu, 25 Jan 2024 15:31:19 GMT by HMRC Admin 2 Response
Hi,

You will be taxed on securities (or an interest in securities) that you get free or cheaply by reason of your employment.  

You can find guidance on employment related shares and securities here:

HS305 Employment-related shares and securities — further guidance (2023)

Thank you.
Posted Thu, 25 Jan 2024 18:21:44 GMT by
Thanks admin! I don't believe my option shares were part of a tax-advantaged scheme (though I will check with my employer), so I believe I need to pay normal tax on the net gain. At any rate, please can you confirm: 1) If the Capital Gains Tax real-time transaction report can be used for calculating and declaring paid tax on option shares 2) How the legal fees should be entered across the pages: "How much did you pay in costs when you got the shares?" "How much did you pay in costs when you stopped owning the shares?"
Posted Tue, 30 Jan 2024 11:05:49 GMT by HMRC Admin 19 Response
Hi,

You can see guidance for listed shares and securities here:

Capital Gains Summary notes  

If your shares are listed, then you would include them in the listed shares and securities section of the onine tax return. If they are not listed, then delcare them in the unlisted shares and securities section.  

The term "allowable costs" covers the cost of buying and selling the shares. This is the sum of buying the shares plus the fees for buying and selling the shares. This would also include the legal fees.

Thank you.

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