Have Tax Questions? Ask a Tax Expert for Answers ASAP
The tax I paid has nothing to do with y redundancy. I was made redundant in 2010 and paid tax on that then. These were PSP shares which I had at the point of redundancy and negotiated that I could keep. In July 2013 I received a share certificate and had to pay the company £426.30 in tax, which I did.
From your answer I'm still not clear whether I have to put this on my tax return.
Thanks every so much for any further clarification you can give me?
The shares were awarded to me in my final year of employment but they were part of a 3 year plan, so I was not able to acquire them until 2013, 3 years after I had left. I negotiated keeping them.
I received a share certificate, no money. And I had to pay £426.30 physically into a nominated bank account. I understood this to be the tax liable on the value of the share certificate at the time at which it was sent to me. It is my understanding that as and when I exercise the share certificate, I will not be liable for tax on that value....only on any incremental value of the shares above and beyond the £1290.27 they were worth at the point at which they were transferred to me.
Does that help?
OK. Thanks for explaining.
My redundancy document states under point 3 - Payment of salary, benefits and expenses - that "it has been agreed that 40 Performance Share Plan shares will remain exercisable on 30th June 2013".
I received an email from the Company Secretary which states the following:
Number of shares to vest 79.6% vesting - 32 shares
Total tax 33.04%
Share price £40.52
Value of award (at current share price in certificate form) £1290.27
Tax to be paid by individual £426.30
I then paid this into a Barclays Bank account.
Hope that is OK?
Thanks. That's great. So I have to add the company as an additional employer then? Is that correct?
Thank you for your help and I will indeed rate you well as a result of this.
I'm doing it online.