An employee of a start up company has the opportunity to exercise his option on vested shares. The option price is say £5,000 and shares are currently valued at £4,500. I understand no charge to income tax will arise at exercise, however is there any immediate relief on the difference?
Or is the relief only given when the employee eventually sells the shares (hopefully at a profit) and the base cost is then the actual price paid at exercise rather than the market value?
Edit: this is an unapproved share scheme and shares are not RCA