(b) (i) Advise Benny of the income tax implications of the grant and exercise of the share
(b) (i) Advise Benny of the income tax implications of the grant and exercise of the share options in Summer
Glow plc on the assumption that the share price on 1 September 2007 and on the day he exercises the
options is £3·35 per share. Explain why the share option scheme is not free from risk by reference to
the rules of the scheme and the circumstances surrounding the company. (4 marks)
(b) (i) The share options
There are no income tax implications on the grant of the share options.
In the tax year in which Benny exercises the options and acquires the shares, the excess of the market value of the
shares over the price paid, i.e. £11,500 ((£3·35 – £2·20) x 10,000) will be subject to income tax.
Benny’s financial exposure is caused by the rule within the share option scheme obliging him to hold the shares for a
year before he can sell them. If the company’s expansion into Eastern Europe fails, such that its share price
subsequently falls to less than £2·20 before Benny has the chance to sell the shares, Benny’s financial position may be
summarised as follows:
– Benny will have paid £22,000 (£2·20 x 10,000) for shares which are now worth less than that.
– He will also have paid income tax of £4,600 (£11,500 x 40%).
Weoftentakeandwedomorningeveryday.A.exercise;exer 英语 2020-05-13 …
I know it’s good to have ____ in the morning,but 英语 2020-05-14 …
英语翻译美国报税单中的一项,恳求中文翻译Advance Earned Income Credit 英语 2020-05-14 …
Climbing mountain is a good exercise.为什么不直接用Climb 英语 2020-05-16 …
(b) Assuming that the income from the sale of the 财会类考试 2020-05-21 …
(b) (i) Advise Benny of the income tax implication 财会类考试 2020-05-21 …
(b) (i) Advise Andrew of the income tax (IT) and c 财会类考试 2020-05-21 …
(ii) Advise Mr Fencer of the income tax implicatio 财会类考试 2020-05-21 …
(ii) Explain how the inclusion of rental income in 财会类考试 2020-05-21 …
astablejob/incomeasecurejob/income解释为一份稳定的工astabl 其他 2020-07-06 …