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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15946
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I was granted shares in an LLC when I joined my last firm.

Customer Question

I was granted shares in an LLC when I joined my last firm. Shares vested in equal parts over 3 years. Paid significant sums each of the next three years, as the grant vested to my control. The shares were classed as income and I paid based on the current valuation in each year.
The company converted to an S Corp and later went public. I sold all my equity last year. Do I owe a capital gain tax on that now? Seems like double taxation.
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. If you paid income tax and NIC as the shares vested, then the scheme was a non-qualifying one as far as HMRC is concerned which is the case with many US share schemes which are designed to be tax efficient in the US, not the UK. The cost of your shares for CGT purposes will be the sum of the price you paid for them and the amount on which you paid tax and NIC. Those two will probably equate to the value of the shares on the days they vested to your control. You will pay CGT if the shares were sold for more than the sum of the CGT cost, computed as I've just described, and the annual CGT exemption. There is no double taxation. I hope this helps but let me know if you have any further questions.
Expert:  TonyTax replied 1 year ago.
Hi, I'm just checking in to find out if you need further advice or clarification.