Unapproved share options

Unapproved share options

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Having devil's own job trying to understand the tortuous advice in CCH NIC manual about if, when and how much NIC is charged on the income chargeable to tax on the exercise of an unapproved share option.  Is there a simple answer?  Would I be right in saying that the rules changed in 2003 but not since?

There is a potential complication in my case in that the options were granted while UK resident but exercised when non-UK resident.  I can suss out the IT implications from manual ref DT1925B.  But the NIC has me foxed.

Thanks

With kind regards

Clint Westwood

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By Chipette
15th May 2015 09:54

RCA or non RCA?

As a general rule, if the shares are readily convertible assets then they give rise to NIC and Income tax when they are exercised and the exercise should be processed through payroll.

I can't comment on residency implications.

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