FAQ: What happens if I die while I am still working for the company?
Your shares have to come out of the plan. The company may require the shares to be sold back to them. If not, then the shares will become the property of your estate. There will be no income tax or NICs to pay on these shares. The personal representatives of your estate may have to pay Capital Gains Tax if they sell the shares for more than they were worth at the date of your death. See our leaflet CGT1 - Capital Gains Tax. An introduction - for more information.
Source: Inland Revenue