arrghh help! shares given as bonus and what tax to pay!

[briSk]

Hi people in the know.

In 2012 i was given shares in my company as an additional bonus.
1) do I have to pay income tax on them when they 'vest' this year
2) the share price has doubled (and the profit is more than my CGT allowance) - do I have to pay CGT on them.

(I am not going to waffle on and distract you with what I thought was the case etc hence the rather direct question!)

I's important as as i thought I was going to be able to sort my gradn out for my 1 year old AND change my decrepit car.
Now I think he'll have to slide around in the mud.. erm I mean I won't be able to get a new car..!

[trickywoo]

I'm pretty sure you won't have to pay CGT unless you sell the shares.

If you do want to take cash out just sell enough shares to use up your annual CGT allowance.

[The Leaper]

A long while ago I had the same deal. I recall that there was no tax liability at the time of the grant. There was no tax liability at the time they vested. But there is a tax liability at the time of disposal. I seem to recall that it was not CGT but at the marginal income tax rate. I await this to be corrected by those who will know the situation for sure.

R.

[parabolica]

How it works at my company is that a certain number/percentage of the grant is withheld at the time of selling to cover the tax. So if you get 100 shares vested and you sell, you on,y get say 70 shares worth of cash.