Paying Federal (US) Tax on vested shares?

[adaptive]

My employer gave me some shares as a bonus on top of an annual payrise. These are vested for 4 years so I get a quarter on the anniversary each year.

When they vested this year, just over half of the vested shares were sold to pay Federal Tax - should I be paying this as a UK citizen? I assumed that I would have to declare it to the UK taxman and they would take their cut?

It seems a bit steep to me, having almost 55% taken to pay tax in a country I dont live or work in....

Have I missed a form somewhere or is this how it is? My bonus now looks pretty stty lol

[Deva Link]

This article might give you some hope: http://www.ft.com/cms/s/2/7bfea4ce-c27d-11df-956e-...

I have an account with a broker in the US and have to complete the W-8BEN form every 3 years, but I have absolutely no idea if this can be used with options from your company.

[jeff m2]

US UK have a reciprocal tax agreement.
I'm in the US so in the opposite sit to you but I have satisfied UK that I pay US taxes so I rec money sans tax.
Also any foreign tax from other countries that is witheld is applied to my tax return and I claim a tax credit.

[Lawrence5]

As above the w8 form - they should have asked you to provide this under the withholding tax laws. Simple form but strange terminology just claim the tax treaty. But again terminology - was it federal taxes or withholding taxes you suffered ?

You should get a 1099 form (might be 1044 ? Been a while) which is just a slip saying what was paid and deducted again an offence if not supplied

Plenty on line if you google it...

[Mannginger]

Deleted as I discovered I was being dumb!

Edited by Mannginger on Saturday 20th January 17:04