AESOP Tax Implications

[skyblueheroes]

Anyone upto speed with the tax issues that surround employers AESOP schemes ?

I won't post the full details unless someone says yes, it could take a while to type ! Its basically to do with if the scheme winds up and proceeds are paid via payroll, whats the low rate to high rate tax implications ?

---------- Post added at 21:01 ---------- Previous post was at 21:00 ----------

Hope I posted in the right area - if not, apologies, please feel free to move.

[SMHarman]

The general rule with an Inland Revenue approved scheme is that the grant of shares or an option to acquire shares is not treated as an income receipt by the employee and there is no tax to pay. On the eventual sale of the shares, there will be, however, a potential charge to capital gains tax. The base cost from which the capital gain is calculated will be the price paid by the employee for the shares.

Why is it winding up. Normally you have the option to buy at the opening, closing or average price over the life of the scheme. What is winding up here, the saving or the share holding?

I may be able to help. It has been a while since I studied this though.

What type of scheme, why winding up etc.
If you want PM me instead
http://www.direct.gov.uk/en/MoneyTax...ax/DG_10022224
lists the different scheme types.

[skyblueheroes]

The company is being bought, so all shares will cease to exist.

We bought them before tax and NIC each month. The ones I have had for over 5 years will be tax free, and the ones between 3 and 5 and less than 3 years will be taxed on the gain I think.

But if the total amount takes me over the higher rate tax threshold, how will that affect my salary for the next few months ?

It also says Marginal Rate. I assume thats 22% upto the higher rate threshold then 40% on anything over that ?