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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 11239
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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My company made me an employee shareholder in Dec-13 by offering

Customer Question

My company made me an employee shareholder in Dec-13 by offering me 10,000 shares in the company. The shares could not be sold until July 2014 but I became beneficially entitled to them in Dec 2013. The share price in Dec-13 was 3.35. On the day when the restriction was lifted (1st of July 2014) - the company reduced my number of shares by 47pct due to tax. I find it is not fair that share units were used rather than their cash value to pay taxes due. In other words - I would be happy to pay 47% tax in cash on the value of shares based on their Dec-13 valuation (when I became entitled to them). But by charging me in share units - I am denied any benefit of future price rises (as well as declines). The price in July 2014 was higher at 3.50 but I was unable to benefit on the 47pct of my holding because the tax was applied on a share unit basis rather than monetary value. It's given that rewarding in shares is different from rewarding in income. I may be directly responsible for the results of the company I work for but I am unable to benefit because I only get half the reward if the units are reduced to pay income taxes. What should have happened is that I would pay 47% tax on 10000 x 3.35 case value, without the loss of my actual share entitlement, and then I would pay CGT on any value increase after that, when I choose to sell shares. The decision to sell shares was taken away from me because I was effectively made to sell 47% of them without wishing to do so, through tax. Is it not against the whole point of being an active participant in company success by receiving shares instead of pure income?
Submitted: 3 years ago.
Category: Employment Law
Expert:  Nicola-mod replied 3 years ago.
Hello,
I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.
I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.
Thank you!
Nicola
Customer: replied 3 years ago.

thank you Nicola - am happy to wait, it is not urgent, and if you find anyone who can comment that would be appreciated.

Expert:  Nicola-mod replied 3 years ago.
Hello,
We will continue to look for a Professional to assist you.
Thank you for your patience,
Nicola
Expert:  Nicola-mod replied 3 years ago.
Hello,
I apologise as we have not yet been able to find a Professional to assist you. Do you wish for me to continue to search for someone to assist you or would you like for us to close your question at this time?
Thank you for your patience,
Nicola
Customer: replied 3 years ago.

We can close the question now, thank you

Customer: replied 3 years ago.

hi there. I understand that my question had been cancelled. Should I expect a refund of £11 that I paid? thank you