Stock Trading and Other Things

What are the tax implications of taking up employee stock options?

I imagine if its treated as income then its liable to income tax? Is it as simple as this? Is there any way of issuing stock options without this tax implication?

Public Comments

1. You need a tax adviser, not an answer here! The paper "profit" you make when you exercise a stock option is taxed like any other employment income (even though you might not have the cash to pay the tax without selling the stock). Tax can be avoided if the option is granted under an HMRC "approved" scheme, which is something the employer would have to create, and this is where you need professional advice.

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