Q&As

On a sale of shares under an employee share scheme, can the employee deduct their transaction costs from the sale proceeds?

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Published on LexisPSL on 08/08/2019

The following Share Incentives Q&A provides comprehensive and up to date legal information covering:

  • On a sale of shares under an employee share scheme, can the employee deduct their transaction costs from the sale proceeds?

Please note that for the purposes of this Q&A we have assumed that ‘transaction costs’ are intended to refer to broker’s fees and similar costs, rather than any tax or stamp duty relating to the transaction.

On this basis, it is most often the case that any transaction costs arising on a sale of shares by an employee under their company’s share incentive scheme would be deducted from the sale proceeds due to the employee.

However, the position on this will very much depend upon the terms of the relevant incentive scheme and its ancillary documents. The governing scheme documents should be checked to ensure that t

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