ETASSUM48190 - Company Share Option Plan (CSOP): 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 Schedule 4 CSOP options, the base cost to be deducted from the disposal proceeds is normally, for options acquired on or after 10 April 2003:

• 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.