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Do not enter information unless the income is taxable. In most cases the income will not be taxable.
A charge will arise when the option is exercised if:
the price paid per share was less than the market value when granted; and/or
a disqualifying event occurred more than 40 days before the date exercised
If money is received in return for canceling or releasing the option, that amount (less anything paid for the option) will be taxable.
The taxable amount is computed automatically.
Name of company and share plan - enter the name of the provider or if the Dividend Service is in use on the system click on the magnifying glass to select a company from the master list
Class of share - enter the class of share e.g. 10p ordinary, this will be completed automatically if the company has been selected from the master list
Unquoted shares (Y/N) - this is for information purposes and will not affect the final taxable amount.
Action - click the magnifying glass to select either Exercise or Cancellation/Release
Date option granted - this is for information purposes only and may be left blank
Exercise/ option price per share - this must be completed if the action is exercise
Amount paid for option - this is not the amount paid for the shares but any amount paid to set up the option.
This area is used when the action is exercised.
In all cases fill in the exercise/option price per share and any amount paid for the option at the top of the screen.
If the option is taxable on a discounted option, fill in the:
Number of shares;
Market value when granted; and
Market value when exercised;
If the option is taxable due to a disqualifying event, fill in the:
Date of disqualifying event;
Number of shares;
Market value when disqualified; and
Market value when exercised;
If the option is taxable on a discounted option after a disqualifying event:
Fill in all the fields.
Note that it is the presence of the market value when granted that indicates a discounted option and the presence of a date of disqualification indicates disqualification.
This area is used on cancellation or release.
Fill in the amount received and any amount paid for the option.
The relief available for any tax paid on grant of option cannot exceed the tax due on the taxable amount computed on cancellation/release of the share option.
Employers secondary NICs paid by employee - if the employee pays the employer's secondary NICs on the exercise, cancellation or release of the option, that amount is deducted from the taxable amount.
Taxable amount - click here to view details of the calculation of the taxable amount.
Included in P60 or P45 (Y/N) - if the taxable amount has been included in the client's P45 or P60, enter Y otherwise the income will be counted twice
