David Gray

Thank you for your reply. Unfortunately, I do not see anything in the "Capital Gains Tax, share reorganisations and company takeovers (Self Assessment helpsheet HS285)" document that quite answers my question. I might be under the incorrection assumption about how a Company can honour share options in an acquisition and a payment is being made for them. Is that payment subject to GCT or Income Tax/NIC?

Hi. I'm struggling to understand if I need to pay CGT on share options that are being exercised due to an acquisition of the company that issued them. The acquiring company is honouring the share options as a part of the acquisition, essentially having the share options converted then immediately buying them off the shareholders. From my understanding that means that there would be no capital gains? as the purchase and sale price is the same? (if so would this then run afoul of income tax?) Thanks for the advice. - David