Does FIFO apply to stock grants

S

shipship

Registered User
Messages
75
I'm in a position where I get annual grants.

I'd like to reduce my exposure to my employer.

Currently I've kept previous grants and I have an unrealised gain.

When given my grants I have an option to sell a portion to pay tax, or sell them all. In future I'd like to sell all.

But, from a CGT, is selling the grant seen as independent, as in, am I selling the recent grant, rather than selling shares on FIFO or pooling basis?



In summary, does selling future grants trigger a tax event on unrealised gains on previous grants.
 
Last edited:

Shares are normally identified by FIFO rules (First In, First Out) so when you sell a share it is the one you acquired first that is being sold.

Except when you have acquired the shares within the previous four weeks, then it is LIFO (Last In, First Out) so it would be the most recent share being sold.

shipship said:
does selling future grants trigger a tax event on unrealised gains on previous grants.
Click to expand...
If you are given a grant and sell it immediately or within four weeks, it is LIFO and does not trigger a tax event on unrealised gains on previous grants.

If you are given a grant and sell it more than four weeks later, it is FIFO and does trigger a tax event on unrealised gains on previous grants.
 
Last edited:
You must log in or register to reply here.
Back
Top