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  • RE: Valuation date of Private Share Options is different to the exercise date

    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).
  • Valuation date of Private Share Options is different to the exercise date

    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.
  • Capital Gains on my shares in anothers name

    Hi, a while back I bought shares in a company. It was a highly sought after company so I bought shares up to the maximum amount in my name and then I agreed with a family member that they would also buy the shares. They also wanted to buy shares but didnt have liquidity so I gave them the full amount to my family member to buy the maximum amount of shares upfront. Half of the amount was a loan for my family member to buy the shares (which was repaid a few months later), half was for the family member to buy shares on my behalf. So now of the shares my family member bought, all are in his name on the share certificate but 50% are theirs and 50% are mine. The shares are eligible for investors relief. This all happened in circa 2016. My question is, I may sell the 50% of shares soon so I want to make sure that my family member will not have exposure to capital gains tax as the 50% of shares have always been mine. The capital gains exposure on my 50% is my problem and I will put on my self assessment. Can anyone confirm this? Thank you