CG56399 - Employee income: Capital Gains: employer's loss recompense
Employers sometimes agree to recompense the employee for any loss made on the sale of shares (‘stop loss provisionsâ€�). »Ê¹ÚÌåÓýapp employee either sells the shares in the open market and receives a further sum as compensation or the shares are acquired from the employee for more than market value »Ê¹ÚÌåÓýapp amount of the disposal consideration in excess of market value is assessable to Income Tax under Part 7 Chapter 3D ITEPA03. For this reason, it should not also be included in the consideration received when calculating the CG loss, even though this reimbursement means that overall there is no actual loss to the employee.