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HMRC internal manual

Employee Tax Advantaged Share Scheme User Manual

Schedule 3 SAYE option schemes: Taxation: Disposal of shares - General

A disposal of shares is a chargeable occasion for capital gains tax purposes. In computing the capital gain or loss on disposal of shares which were originally acquired by directors or employees exercising options obtained by reason of their employments, the base cost to be deducted from the disposal will normally be:

  • the amount (if any) paid for the option, plus
  • the option exercise price paid for the shares themselves, plus
  • any amount that counted as employment income of the employee under section 476 when the shares were acquired by exercising an option (i.e. the taxable amount), CG56400 onwards