share schemes

Question 1

acquiring shares by an award of shares

Answer 1

• share incentive plan (SIP)
• non-tax advantage share scheme

Question 2

acquiring shares on the exercise of a share option

Answer 2

• SAYE scheme
• company share option plan CSOP
• enterprise management incentive (EMI)
• non-tax advantaged share option scheme

Question 3

base costs of shares

Answer 3

amount paid by employee for shares x
plus: amount chargeable to income tax on acquisition x
= cgt base cost x

EXCEPTION:
SIP - base cost will be market value at date shares are withdrawn
employees generally withdraw shares from a SIP prior to sale therefore no CGT would arise
gain only arises if there is a delay in selling

Question 4

awarding shares restriction

Answer 4

amount chargeable to income tax includes amount paid for the shares (if any) + any charges to income tax when the restriction is lifted