Hi

(Assuming it's a Savings related share option scheme (sharesave) rather than a Company Share option plan)

I think it would be classed as a Capital gain if you were to sell the shares. This would mean there is a potential Capital Gains Tax (CGT) liability. However each individual has an annual CGT allowance (£8,800 in tax year 06/07). Assuming you weren't using your CGT allowance for any other purpose during the tax year, you would be able to use this allowance when you come to sell these shares. Assuming the shares don't increase in value any further your gain would fall below the annual allowance which would mean you would have no further tax to pay.

I'm not a tax adviser, but this is my general understanding of it.

Hi-

I wonder if anybody can help on this one-

I have been saving with my employers Share save scheme, I have saved for 5 years and will shortly have the option to buy the shares at the price they were 5 years ago. I have saved £1800 over the 5 years and this would allow me to buy XXX shares.

The shares are obviously now priced a lot higher than 5 years ago, but I am able to purchase these at the price set 5 years ago.
If I purchase these shares they will be worth somewhere in the region of £9,000.

What I would like to know, is if I sell these shares will I have to pay any tax.

Thanks