SAYE - Company Share Scheme - options on maturity?

Jimbo Mahoney · 21 Oct 2010 at 16:22

I'd like some information from anyone who's been involved in their company's SAYE scheme, namely how the process actually works at the completion date.

For example, can I transfer my shares /options to another broker before selling them?

Is there a "race" for employees to sell their shares in case the volume affects the share price or is the volume not allowed to reach that level? (e.g. our SAYE scheme actually got scaled back and we weren't able to put the full £250 per month in).

Can I exercise my options and buy the shares and then sell only those that will keep me within my annual CGT allowance?

Simon · 23 Oct 2010 at 18:57

Are you going to make £10k profit on your shares?

Jimbo Mahoney · 8 Nov 2010 at 08:14

Simon said:
Are you going to make £10k profit on your shares?

Almost certainly, although anything could happen between now and maturity.

My main concern is transferring the options to my execution-only broker, as I'd heard that the broker my company is using charges a % of the total.

Simon · 8 Nov 2010 at 09:41

Odd, mine is only £20 fee to sell.

You either got a very good option price or your company is flying

You could exercise the option to take the shares, and then transfer them to another broker. Either way you don't need to sell all the shares in one tax year either.

Kemik · 8 Nov 2010 at 10:39

Jimbo Mahoney said:
Can I exercise my options and buy the shares and then sell only those that will keep me within my annual CGT allowance?

Yes, they're treated as any other shares, therefore you can sell or keep as much as you like. The only tax charge you'll experience is CGT, unless of course you sell less than the amount that causes a gain of £10,100 in the year.