What is the cost of shares when I exercise employee share options in the United Kingdom?

HMRC says that if you exercise an employee share option after 9 April 2003, the cost of the shares is what you paid for the option, plus what you paid for the shares, plus any amount that counts as income on the exercise. Some schemes have tax advantages, including a Share Incentive Plan, Save As You Earn, a Company Share Option Plan, and Enterprise Management Incentives. Outside those schemes, you report Income Tax if your employer does not take it through payroll. This page does not say which scheme you are in, and it does not work out your tax.

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