Following a company buyout, my client received shares in the new company in exchange for shares and options held in the old company. Five years on, the value of these shares has now dropped dramatically. Client has heard from a fellow employee that now he's had them for five years, he can get tax relief for these "losses".
I'm not aware of any tax relief unless the shares are sold or become of neglible value (which there aren't). Is there any other relief available?
Related resources
Replies (5)
Please login or register to join the discussion.
https://www.gov.uk/government/publications/employee-shares-and-securitie...
Is this possibly where they get five years?
Possibly, although I'm still no clearer on whether that has any bearing on my client situation.
Possibly, although I'm still no clearer on whether that has any bearing on my client situation.
You need to know what happened in order to know what is or isn't relevant. The mention of options indicates the presence of share schemes (probably not SIP, but who knows?) It also indicates the presence of paperwork. Get hold of the paperwork.
I've never heard of shares being exchanged for options other than on the exercise of the options. I suspect your client briefly had additional shares in oldco which were exchanged in short order for shares in newco. What was the tax treatment of the exercise of the option?
(I'm assuming there was tax on the "gain" at that time, else why should there be relief for the "loss" - now or in the future?)
Thanks, I've requested more information but just wanted to be sure I wasn't missing something obvious.
Guy at work is almost as bad as bloke down the pub!