CG56527 - Employee share schemes: trustees: deemed disposal
The terms of the trust deed may be such that the shares or other securities are settled property for Capital Gains Tax purposes, see CG33220. In these cases there is a deemed disposal of the shares or securities by the trustees at market value when the employee or related beneficiary becomes absolutely entitled to them. See section 71 of the Taxation of Chargeable Gains Act (TCGA) 1992 and CG37100.
If the trust is UK resident, the trustees will normally be liable to Capital Gains Tax if the shares or securities have increased in value whilst held by them as settled property. You should, however, consider whether section 239ZA TCGA 1992 may apply to relieve the trustees of any charge to Capital Gains Tax, see CG33581.