Selling shares held in US - costs?
Discussion
I work for a US based company, but an a UK resident
A few years ago I was awarded some shares that are held in a US share administration company,
When the shares were awarded, a % were withheld for taxes. My account now shows the value of the balance remaining.
I am now thinking of selling them - would there be any other costs/taxes to pay or should I expect to receive the majority of the current balance (subject to the share price staying roughly the same) and the shares withheld would cover the taxes?
First time dealing with shares so apologies if this is a stupid question
A few years ago I was awarded some shares that are held in a US share administration company,
When the shares were awarded, a % were withheld for taxes. My account now shows the value of the balance remaining.
I am now thinking of selling them - would there be any other costs/taxes to pay or should I expect to receive the majority of the current balance (subject to the share price staying roughly the same) and the shares withheld would cover the taxes?
First time dealing with shares so apologies if this is a stupid question
If the value of the shares has increased substantially since they vested you may be liable to capital gains tax, but any income tax was covered by the shares they withheld.
My employer uses fidelity stock plan for share grants and they charge a small fee when you sell up and convert to GBP. I expect most will be similar.
My employer uses fidelity stock plan for share grants and they charge a small fee when you sell up and convert to GBP. I expect most will be similar.
You paid the income tax when the shares vested and became yours.
You are liable for capital gains tax on the increase since then.
If they have stayed roughly the same then there should be no additional tax to pay.
I use Wise to transfer my USD to GBP with a £20 charge from Schwab as the wire transfer fee. And the balance drops in my uk bank account after a couple of hours. Relatively pain free
You are liable for capital gains tax on the increase since then.
If they have stayed roughly the same then there should be no additional tax to pay.
I use Wise to transfer my USD to GBP with a £20 charge from Schwab as the wire transfer fee. And the balance drops in my uk bank account after a couple of hours. Relatively pain free
Thanks both for your replies. Sounds a lot more straightforward than I was expecting.
I thought these would be covered under employee shareholder shares and not liable to capital gains?
https://www.gov.uk/tax-employee-share-schemes/empl...
I thought these would be covered under employee shareholder shares and not liable to capital gains?
https://www.gov.uk/tax-employee-share-schemes/empl...
As fat80says.
They would have to be part of a very specific scheme for them to not be subject to any further tax, I think you would know about it if so.
So I think that now that you have the shares and some have already been withheld for income tax you would now be liable to CGT if there is any gain.
Remember that CGT allowances have halved this year. If you have multiple vesting you will need to calculate an average cost in pounds as per a 104 holding.
I used Wise too.
They would have to be part of a very specific scheme for them to not be subject to any further tax, I think you would know about it if so.
So I think that now that you have the shares and some have already been withheld for income tax you would now be liable to CGT if there is any gain.
Remember that CGT allowances have halved this year. If you have multiple vesting you will need to calculate an average cost in pounds as per a 104 holding.
I used Wise too.
Gassing Station | Finance | Top of Page | What's New | My Stuff