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Posted Sat, 20 Apr 2024 13:38:31 GMT by iceman444555666
Hi, Background: 1. My employer (a large private company) has granted me Share Options. The strike price of the options is £0.01. I understand that upon exercising I will have to pay income tax on the difference between the market price and the strike price. Because my employer is a private company it does not have a traded share price and as such the market price of the Share Option must be estimated. 2. My employer has asked a prestigious accountancy to do a valuation of the share options (for Tax purposes). The date of the last valuation is 30 September 2023. For simplicity lets say the valuation is £10. 3. Today is April 20th 2024. Its the new tax year now so I would like to exercise my options knowing I have until Jan 2026 to pay HMRC the income tax I owe. 4. I plan to exercise the share options in the next week or two. 5. Later this year my employer will get another valuation for tax purposes. This valuation will be dated as of 31 March 2024. Whilst the valuation will be as of 31 March 2024 it wont be delivered until later in 2024. 6. On my self assessment tax return what valuation should I use? Either the 30 Sep valuation (as this is the most recent valuation at the time of exercise) OR the 31 March 2024 valuation EVEN though it has not been performed yet so I dont know what it will be OR what my tax liability will be. Thank you for your time. Any clarity will be much appreciated.
Posted Fri, 26 Apr 2024 06:27:20 GMT by HMRC Admin 25
Hi iceman444555666,
Please refer to  guidance here:
Get a share scheme valuation from HMRC
Thank you. 

Posted Fri, 26 Apr 2024 07:45:08 GMT by iceman444555666
Hi! Thank you so much for your reply! I'm afraid the link provided doesn't include Unapproved Options, which is what I have. (Sorry i should have clarified this).
Posted Wed, 01 May 2024 10:28:17 GMT by HMRC Admin 25
Hi iceman444555666,
Please note that comprehensive guidance on calculating the tax due on the sale of Share Options (including Unapproved Options) is provided here:  
HS305 Employment-related shares and securities - further guidance (2020)
Thank you. 

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