Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
, see all updates

Employee share schemes: trustees: employer

Any capital gains consequences for the employer will depend on how the trust acquired the shares or other securities that it passes to the employees.

  • If they were acquired by the trustees on the open market, there will be no capital gains consequences for the employer.
  • If shares were issued to the trustees by the employer company (or by some connected company), there will be no capital gains consequences for the company issuing the shares as the issue of shares by a company is not a disposal of those shares.
  • If the trustees acquired the shares or other securities directly from an individual or close company shareholder and the transfer benefits from favourable IHT treatment, the disposal and acquisition consideration may be determined by s239 TCGA92, see CG36000+.