Stock Grants
Author
Discussion

fomb

Original Poster:

1,405 posts

241 months

Sunday 17th February 2013
quotequote all
So, I'm sitting on a job offer from a company in the US, and part of the offer is that of a stock grant for a few thousand. From what I understand, the first 1/4 will vest after a year, and then the rest at 1/48 per month. As I understand it this means that I'll receive £x worth of shares at the end of the vesting, which I am then free to do what I want with any time I want.

Question is, what does this mean for me tax wise, and have I understood the concept correctly?

bogie

17,096 posts

302 months

Monday 18th February 2013
quotequote all
you normally get "options" at a "strike price" so its the option to buy shares at a future time, at the price on the day they are issued

so if you get 2000 options $20 and in 4 years when they all vest the price is $40 you could make $20 a share, so you trade them and get $40000

you have to pay tax on the gain, usually by this time you should fill out a W8BEN tax form with the US and they hold back the tax

thats the gist of it...Ive been working for a US company for 10 years and on good years get a few thousand options....save them up and they are like a bonus from time to time if the company is doing well...and golden handcuffs if you get a good amount in a company going up


anonymous-user

84 months

Monday 18th February 2013
quotequote all
I thought these were stock grants, not options.

With a grant doesn't income tax become payable on vesting unlike an option where the tax becomes payable on exercising the option?

fomb

Original Poster:

1,405 posts

241 months

Monday 18th February 2013
quotequote all
To confirm, this is a stock grant - not options.