Incentive stocks are taxable but you can save a significant amount of tax by accepting stock options. First of all, you don’t pay any tax when you receive the stock options or when you actually exercise the stock option. You will pay income tax for any income you receive from the stocks plus capital gains tax for potential stock disposals. You don’t pay national insurance though. In addition, if you hold the stock for long enough, you can qualify for the rate applicable for the long term capital gains tax.
