Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Sun, 19 Nov 2023 10:14:14 GMT by
Hi there. In previous years I received extra money from a Share incentive plan in my company, it was all paid in via payroll and PAYE'd at the time. I hadn't received any money from it during the self assessment 2022-2023 year, but my company was acquired during this period, and the new owners basically bought out all the shares. At this point we all received a one off cash award for the SIP shares. I received many emails and documents at the time from my company telling me that this particular payment is non reportable on my self assessment... i.e. "You will not be subject to income tax or employee’s national insurance contributions when withdrawing your SIP Shares from the SIP Trust in connection with the Acquisition as the SIP is registered with HM Revenue & Customs as a ‘share incentive plan’ that benefits from certain tax reliefs." and... "You should not be liable to any CGT in relation to the sale of the SIP Shares as part of the Acquisition. A capital gain is calculated as the amount by which the proceeds that you receive on the sale of your SIP Shares exceeds the base cost of those SIP Shares. The SIP Shares sold directly from the SIP in connection with the Acquisition will have a base cost that will be deemed to be their market value at that time. As a result, no CGT will arise on the disposal of SIP Shares directly from the SIP as part of the Acquisition." Now I'm filling in my self assessment at the first time and even though these documents are clear, I really just need a sanity check if I truly don't have to report this one off payment. Kind Regards K
Posted Wed, 22 Nov 2023 13:52:31 GMT by HMRC Admin 19

You will not be chargeable to tax if your shares cease to be subject to the plan because you ceased employment through a change in control or sale of the company you work for. You can see guidance here:

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

Tax and Employee Share Schemes

Thank you.

You must be signed in to post in this forum.