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What this means
The first tax event is usually employment income at vest or exercise. Only the movement after that point normally becomes CGT territory.
Professional read
The tool treats the market value at vest or exercise as the amount already brought into employment income, which then becomes the base cost for later CGT work.
Taxing the full sale proceeds as CGT and forgetting the PAYE-style income tax event that often happened earlier at vest or exercise.
Check whether your award is actually a tax-advantaged scheme before relying on this, and reconcile the broker statement with the payroll withholding your employer has already applied.
EMI, CSOP, SAYE, SIP, foreign tax, mobile employee issues, or employer withholding quirks need a case-specific review.
Methodology and source basis
This tool follows the usual UK sequence for non-tax-advantaged employee shares: employment income first, then CGT only on later movement from the vest or exercise value to the eventual sale value. It uses the 2026/27 rest-of-UK income tax bands, employee NIC rates, the £3,000 annual exempt amount, and 18% / 24% CGT rates for shares.
| Reference | Why it matters |
|---|---|
| GOV.UK employee share schemes | Confirms the core difference between tax-advantaged and non-tax-advantaged employee share routes. |
| GOV.UK tax when you sell shares | Sets the CGT treatment on disposal once you have already established your base cost. |
| HMRC 2026/27 rates and thresholds | Source for the income tax and employee NIC assumptions used for the PAYE-style estimate. |