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Share identification - acquired via share scheme

Client holds shares acquired personally and via share scheme - same holding?

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My client holds ordinary shares in his own right in his former employer and has now received further ordinary shares via a share scheme.  These shares are identical ordinary shares so presumably the new acquisition will be pooled with the existing holding? "...all shares of the same class in the same company are identical"

This will be important as some of the shares which have been exercised have been immediately sold to cover the PAYE tax liability.  On the basis that the shares will all be pooled, a gain will arise as the base cost of the original shares is much lower than the exercise price.

Many thanks for clarifications.  

Replies (3)

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By Anonymous.
27th Oct 2020 12:43

Yes. Them's the rules. I suppose the only way to avoid is to sell on the day the scheme shares vest?

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Replying to Anonymous.:
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By Wanderer
27th Oct 2020 12:56

Don't the various matching rules come into play on the exercise and disposal? (or is that what you are saying, exersale on same day?)

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By Anonymous.
27th Oct 2020 13:27

Wanderer wrote:

Don't the various matching rules come into play on the exercise and disposal? (or is that what you are saying, exersale on same day?)

Sorry, reading and responding on the hoof made my contribution worse than normal.

Yes, very clumsily that is what I meant. There should be minimal gain/loss if the shares to fund the income tax liability are sold on the same day as the award vests.

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