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Company Share Purchase Scheme

How to calculate the purchase price of shares via a Company Share Scheme

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My client aquired shares via a Company Share Purchase Scheme where salary was used to buy shares each month.  The original tranch was purchased in 1992 and there also been share splits when he received 2 for 1.  As the shares are in a US based company he would like to sell the shares and wants to work out any capital gains.  Any help and advice would be greatly appreciated.

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By David Ex
04th May 2022 13:30

Err, the usual way? Proceeds less cost? What am I missing?

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Replying to David Ex:
By SteveHa
04th May 2022 14:43

You're missing nothing that I can see, unless the question is really asking how should he calculate the value of the shares for sale. In which case, methods are pretty much universal. EBITDA, anyone?

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Replying to SteveHa:
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By David Ex
04th May 2022 15:16

SteveHa wrote:

You're missing nothing that I can see, unless the question is really asking how should he calculate the value of the shares for sale. In which case, methods are pretty much universal. EBITDA, anyone?

Absent anything to the contrary, I assumed the proceeds were the proceeds and cost was cost as “the salary was used to buy shares each month”. But anyone’s guess if there are relevant facts we are not given.

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Replying to David Ex:
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By Tax Dragon
05th May 2022 05:52

David Ex wrote:

But anyone’s guess if there are relevant facts we are not given.

It's a Company Share Purchase Scheme.

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Replying to Tax Dragon:
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By David Ex
05th May 2022 13:59

Tax Dragon wrote:

It's a Company Share Purchase Scheme.

Is that a specific arrangement with its own tax rules and is it a UK Company Share Purchase Scheme or a US Company Share Purchase Scheme?

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Replying to David Ex:
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By Jan Hobbs
06th May 2022 09:09

It's a US Company and my client doesn't have the information required to calculate the cost.

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Replying to Jan Hobbs:
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By Tax Dragon
06th May 2022 09:15

Nor does anyone here.

Has your client tried asking the employer for the info?

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