31. COMPANY SHARE OPTION PLANS Flashcards
1
Q
what are the 2 main conditions for CSOP?
A
no discount on MV of shares when granted
max value of shares at date of grant is 60k
2
Q
what is CSOP?
A
company share option plan
grant employee option to buy shares at MV of when granted
employee can then take up option within 3 years
3
Q
what happens when CSOP is sold?
A
if not sold withing 3-10 y then charge to employment income -
MV of shares at date of exercise (when option triggered)
Less: Option Price
Employment income
4
Q
is NIC chargeable
A
yes if shares are readily convertible asset
5
Q
how to calculate CGT?
A
Sales proceeds
Less: Cost
Less: Income Tax paid
= Capital Gain
