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Are
you exercising your options effectively?
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If you are one of an increasing
number of employees - thought to be in the region
of 3 million (Source: ICAEW 2001) - who hold
share options, you could end up saving yourself money
by considering transferring them, up to certain limits,
into an Individual Savings Account (ISA).
Tax saving
You could save thousands of pounds in tax by transferring
your share options into an ISA when they mature. With
an increasing number of employees being offered share
options and employee share ownership schemes or ESOPs,
this tax concession is becoming more relevant than ever.
Tax- efficient wrapper
If you have shares released to you or acquired through
an employee share scheme, instead of selling them and
buying them back through an ISA, you could transfer
them straight into the tax-free wrapper.
After you exercise this option, you have 90 days to
transfer the shares into an ISA. This can equate to
a considerable concession, as there are many share options
with a lot of profit in them. The amount you can transfer
is calculated on the market value of the shares today.
To discuss how best to mitigate any potential tax
payments arising from your share options, please e-mail
or contact
us for further information. |
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The past
is not necessarily a guide to future performance.
Levels and bases of, and reliefs from, taxation
are subject to change. These investments are
intended as long-term investments. If you withdraw
from these investments in the early years, you
may not get back the full amount invested. Investment
values may fall as well as rise. You may not
get back the full amount invested.
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