So we may be talking at cross purposes. When the shares were given to me by my employer, and deposited into a brokerage account, income tax and NI were paid at that point.
But from that point to the point at which I actually sold the shares, the share price went up and I had a gain.
Now interpretation # ***** of that is that given it is shares, then the only tax to be paid on the gain is capital gains tax - which would be 28%.
However interpretation # ***** is that these shares were given to me as a form of income, and the gain would also be classified therefore as income, so I should pay income tax on the gain as well now, and that would be at 45%
I would be most interested in your view of whether the tax due on the gain is according to interpretation # ***** #2?
So to be sure I understand. Lets say the shares vested, and suffered income tax at that point, and were worth £50K after income tax. The value then rose to £80K, so a gain of £30K that has not suffered any tax yet.
If its an approved scheme, then I need to still pay income tax, likely at 45% or so, on the £30K gain.
If its not an approved scheme, then I will only have to pay CGT on the £30K gain, likely at 28% or so.
(I have simplified and taken away the issue of the CGT allowance of £11k)
Thanks for your help!