While we have extensive experience helping bp employees and alumni optimise their benefits, Emery Little operates independently and is not affiliated with or endorsed by the bp group, including BP Pension Trustees Limited, on behalf of the BP Pension Fund. This allows us to provide objective, independent guidance focused solely on your best interests.
For many bp employees, share awards form a significant part of your pay package. While these shares represent recognition and potential wealth, they bring a challenge many struggle with: working out the “pooled cost” for tax purposes.
Having worked with bp Leaders for over 25 years, we’ve seen how this complex task can cause hassle and stress.
The hidden complexity
You’ve likely built up bp shares through various schemes – SharematchUK, SharesaveUK, Restricted Share Plan (RSP), Share Value Plan (SVP), Individual Share Value Plan (ISVP), Group Share Value Plan (GSVP), and potentially Reinvent bp share options. Each comes with its own acquisition date, cost basis, and tax implications.
This has real financial consequences when calculating Capital Gains Tax (CGT).
What is pooled cost?
When you acquire shares of the same company at different times, they form what HMRC calls a “share pool.” The tax basis for any shares you sell uses the average cost of all shares in that pool.
Example: you acquire 100 bp shares in January at £5 each (£500), then 200 shares in June at £4 each (£800). Your pool contains 300 shares costing £1,300 total – average cost £4.33 per share. If you sell 150 shares, your cost basis is 150 × £4.33 = £650.
This calculation becomes challenging because of:
Multiple acquisition methods – Different schemes have different cost basis calculations and vest at different times.
Reinvested dividends – Each reinvestment creates a new acquisition. Over years, this creates hundreds of small acquisitions to track. This is why we recommend taking dividends as cash.
Historical record keeping – HMRC can require documentation going back years, often longer than most people keep records.
When you sell bp shares, an incorrect pooled cost calculation can lead to paying too much tax or, potentially worse, facing HMRC inquiries if you’ve underpaid.
The real-world impact
A bp Group Leader with 30 years of service spent over 20 hours reconstructing their share history before a significant sale but wasn’t confident in their calculations.
Another overpaid nearly £18,000 in CGT over three years due to incorrect calculations.
One Leader told us: “I avoided selling bp shares because I didn’t know the tax implications.”
To us (and them) that’s no way to make strategic financial decisions.
Why specialist expertise matters
While your Computershare portfolio details summary provides excellent documentation on your bp share awards, the responsibility for maintaining records and calculating the tax implications ultimately falls to you. Standard accounting software and general tax advisers often lack the specialised knowledge needed to correctly track pooled costs for complex executive share schemes.
This is precisely where specialist expertise becomes invaluable. At Emery Little, we’ve teamed up with a specialist team of accountants who have worked with many of our bp clients. Together, we’re able to accurately reconstruct your historical share acquisition data, calculate correct pooled costs after each vesting event, and provide accurate CGT calculations for any sales.
Importantly, when the bp share price has been down, we can also calculate any sale losses which can be saved indefinitely to be offset against any future capital gains.
What matters most isn’t just the technical calculation – it’s the confidence that comes from knowing your tax position is optimised. This allows strategic decisions about your bp shares based on financial goals rather than tax uncertainty.
A proactive approach
Working with specialists provides:
Confidence – Accurate pooled cost figures let you decide when to sell based on financial objectives, not tax confusion.
Strategic planning – Know your exact position for proactive CGT planning across tax years.
Time efficiency – Hours saved can be redirected to more important things.
Moving from complexity to clarity
If you’re concerned about your share position, start by gathering all existing documentation. We don’t just calculate your current position – we maintain ongoing records, providing updates after vesting events and alerting you to tax-efficient opportunities.
We’ve spent over 25 years helping bp employees navigate these challenges – from uncertainty to confidence in managing your bp shares.
Think of a colleague or friend at bp who’s mentioned concerns about their share taxes or avoiding selling shares because they’re unsure of the implications. Share this article with them – they’ll likely thank you for it.
Want to learn more about how we help bp Leaders optimise their finances? Explore our bp services page here. If you’d like to discuss your specific situation, you can get in touch with our team directly.
