Exercise to sell7 Mar 2025 09:20
Just for clarity when you are gifted free shares as per this. You have to pay notional income tax rate on them- hence the 'sell to cover' that liability which is what he has done here. The remaining shares remain as his- he will pay CGT on the gain from this point. This is pretty standard - as one of the learned posters has pointed out. If he had exercised and sold all, i'd be more concerned, the fact he's held onto the shares after tax is a positive for me. Not sure i'd have exercised them at this level mind, as he will get CGT to pay unless he can stick some in ISA's, etc etc the tax bit gets a little complex!