CG56398 | Shares and securities: employee share schemes: employment-related securities: computation- loans- amounts forfeited by employee

In some employee share schemes, the employer may loan funds to the employee to buy shares or other employment-related securities, on terms that the employee should retain the shares for a specified minimum period. The employee may be required to forfeit a sum (for example, a proportion of the value of the asset) if this condition is not met. In such cases, you should not allow any deduction for the sum forfeited in computing any Capital Gains Tax liability on the employee. There is no amount falling within section 38 of the Taxation of Chargeable Gains Act 1992.