Tax on vested shares

[the_g_ster]

Work gave me some shares a few years ago (us shares on Nasdaq) and they’ve vested now so can cash in. They are on the ETrade platform and they are taking 45% tax from the sale. Is that right? Are they considered as paye or cgt? These aren’t approved under any uk scheme.

[bogie]

Yep, ive worked for a US employer and had shares (RSU) as bonus for 15 years and they have been treated the same. Its shows as PAYE income and taxed withheld to cover it. In your payslip for the month you sell you will see extra pay shown as share benefit or bonus and extra tax out. Your gross pay for the year will include it so if you earn £60k and sell £20k of shares your gross pay shows up as £80k.

[cavey76]

Been in US companies for the last 12+ years and had RSUs consistently. Consider them as income and if you get informed you are getting RSUs(Restricted Stock Units) always half the amount in your head to account for tax withholding.

Boss: Congrats Cavey the board have agreed to $100,000 of RSUs as a retention over the next four years. This is a reward for your commitment….blah blah blah.
Me: Thanks!

Me later doing the math:
- $100,000 = $50,000 after PAYE/NI is withheld
- $50,000 = ~£36,000
= ~ £9,000/year.

Dont get me wrong, i am not ungrateful but $100,000 when turned into pounds, shillings and pence doesnt sound quite as transformative.

I have ALWAYS sold mine at vest day since i had the misfortune of working for a large public company that went into chapter 11 and everyone lost their RSUs. I beleive if you had enough and you held onto them you could also incur a CGT exposure if your companies stock climbed.

[The Leaper]

cavey76 said:

I beleive if you had enough and you held onto them you could also incur a CGT exposure if your companies stock climbed.

Don't I know it! It's the reason I sell up to the max each tax year without incurring CGT.

R

[LeroyLoser]

Think yourself lucky you aren’t in France, 60% gone, then any increase in value over issue price, another 35% capital gains tax.

Moving to Switzerland next year, 35% and zero capital gains thereafter.

Even the tax difference between Uk & France on a 500k bonus is near enough 70k, we love it here but we’re not swallowing that for the next few years

Edited by LeroyLoser on Sunday 17th October 14:41

[supersport]

Ours are withheld at the employee nic + employer nic.

Corrected in the payslip for approve tax rate.