Share Options, when exercised, are subject to income tax.
If the shares are sold immediately upon being exercised, then the difference between to option exercise price and the sale price are taxable at the marginal rate of income tax.
If the shares are not sold immediately upon being exercised, then the difference between to option exercise price and the market price on the date of exercise are taxable at the marginal rate of income tax. The gain, which is earned over and above the market price upon the date of exercise and which results from holding the shares is subject to Capital Gains Tax.
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If you require more information please consult your tax advisor or email us at tax@fixmytax.com.
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