Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.
Were these share purchase schemes HMRC approved?
The NI charges are incorrect. On the sale of approved share option schemes the only tax liability is for Capital Gains Tax (CGT) on the difference between the option price and the net selling price. This is levied at 10% or 20% or a combination of the two rates depending on your income including the gain in the tax year of disposal. You have a non cumulative Annual Exempt Amount (AEA) of 11.7K to offset any gain. You must take up these imporper NI charges with your employer, but I warn you recovering overpaid NI is very difficult.
I do hope that you have found my reply of assistance.
This is US taxation and you are liable for UK CGT on the gain also. Any US tax is allowable as a tax credit against your UK liability through the Double Taxation Treaty between the two countries.
You can declare this gain on your self assessment tax return for the relevant year. You will need to pay CGT on the gain made between the net selling price and the option price,
Please be so kind as to rate me before you leave the Just Answer site.
With holding taxes in the States can be very high indeed. You may well have fallen foul of these although the usual rate for foreigners is 30%. You should take this matter up with the paying agent.
From the way that these transactions are being handled I fear so.
From your answer it would appear to be the broker.
I think you should be expecting more from these transactions, but maybe the agent is making heavy deductions also.
I would suggest that this would be an excellent approach.
That is possible although if you recover the with holding tax you will loose the tax credit it creates.
CGT is levied at 10% or 20% or a combination of the two rates depending on your income including the gain in the tax year of sale. In your case it would all be at 20%.
Yes, and by then the AEA will have risen again, I hope!
No, CGT is the only tax this attracts, but do not forget the tax credits if the US tax position cannot be sorted out.
Thank you for your support.