EMI Shares Sale

EMI Shares Sale

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Hello,

I have a client whose shares purchased under his employers EMI scheme have been sold. However he received cash last year

and a preference share alloaction which is retained until the 12/13 tax year. On calculating the capital gains tax due, is it correct

that both the amount of cash due and the value of the preference shares payable next year total the consideration recieved and therefore

is the basis of this years CGT calculation? Effectively he will pay CGT this year on monies receivable next year.

Many thanks

Replies (2)

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By gbuckell
14th Jan 2013 12:29

Rollover

You are correct but it should be possible to roll over the capital gain relating to the preference shares into the base cost of those shares. That leads to the question of whether the original disposal qualified for ER and whether the preference share redemption will qualify. If the answers are yes and no respectively then, dpeending on the size of the numbers, one may wish to claim to ignore the rollover provisions so that ER can be claimed on the whole of the first disposal.

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By HASXX
15th Jan 2013 08:50

Thank you for replying - the gain doesn't qualify for ER but I shall look into the possibility of roll over relief (I didn't think it would apply for this but will dig further!).

 

Thanks again.

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