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Posted Mon, 21 Nov 2022 14:03:16 GMT by Kirsty Harris
When I was employed by Company X, I was awarded options. I left this Company in 2019 and the options remained. In 2021, the company floated so I was able to exercise and sell the shares and we were given the option to pay Tax upfront on all exercised options which I chose to do. What I can now see is that Company X has processed this as income so enable for tax calculations which makes sense, however, the reality is because I didn't sell all the shares I didn't receive anywhere near this income but accept the way it was processed to pay the tax upfront. i.e. Taxable Income £25k, Income Tax paid £10k but because £10k of my proceeds went to pay tax, and other shares I held onto, all I've received is £5k. My Tax Advisor is telling me I was employed by Company X at this time - I wasn't - I joined Company Y a week after leaving and need to declare the "income"of £25k To this point, I didn't receive a P60 or P45 in 2019 from Company X either. I feel really uncomfortable signing off on my self assessment on this basis especially as he advises me I'll now need to pay an additional £2.3k in tax as this has tipped me over the £100k threshold which then means on the basis of having £25k in shares all I will have received is circa £2.5k less an invoice to an accountant and a lot of stress. Help!
Posted Wed, 23 Nov 2022 14:37:40 GMT by HMRC Admin 32

Please refer to guidance here:

Tax when you sell shares

Shares and Capital Gains Tax (Self Assessment helpsheet HS284)

Thank you.

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