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Posted Fri, 02 Dec 2022 15:42:53 GMT by marcog
Hello, I used to live in the uk three years ago and now live and work in Spain. I would like to exercise some options from my previous employer when I was living in the uk (uk company). Do I need to pay income tax on the market value of the shares in the uk? Do I need to declare anything in the uk? Thanks
Posted Tue, 06 Dec 2022 14:10:08 GMT by HMRC Admin 19
Hi,

Non Resident Capital Gains (NRCG) generally only applies to the direct or indirect disposals of UK property or land. Please refer to the following guidance:           
Tell HMRC about Capital Gains Tax on UK property or land if you’re not a UK resident                                                                    

CG73920 - NRCG and the exemptions: Disposals from 6 April 2019: Introduction

Thank you.
Posted Tue, 06 Dec 2022 14:37:24 GMT by marcog
Hey exercising options (ie buying shares of a company for a set price) is not about capital gains. Rather income tax. Notice the company is private and I cannot sell the shares. Do I need to pay income tax and on which amount? Is there a tax relief and do I need to declare anything?
Posted Thu, 08 Dec 2022 14:55:15 GMT by
Hi marcog,

You can take a look at EIM11875.

It advises that where an employee is granted a right to acquire shares under a plan that is not part of the scheme approved by HMRC, then there will be a potential tax charge, when the option is exercised, assigned or realeased.

EIM11875 - PAYE: special type of income: gains from share options

Thank you. 


 

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