Share Issue And Tax

[cuthy2k]

Dear the kickack gurus,

 

I am due to receive shares under my companies LTIP later this month.

 

I am told that the tax on these shares is 40%. As I come nowhere near the 40% tax bracket i am wondering how on earth it can be so high? THe value of the shares is not even ?1k! Add this 'benefit' to my salary and still nowhere near the 40% tax earning thereshold.

 

Help and guidance appreciated from any financial chaps/chapesses!

 

(the company are not helpful at helping me get to the bottom of this).

[IronJambo]

Is that tax rate maybe only applicable if you sell them straight away? Got a feeling that would change after a year or so

 

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[269miles]

Dear the kickack gurus,

 

I am due to receive shares under my companies LTIP later this month.

 

I am told that the tax on these shares is 40%. As I come nowhere near the 40% tax bracket i am wondering how on earth it can be so high? THe value of the shares is not even ?1k! Add this 'benefit' to my salary and still nowhere near the 40% tax earning thereshold.

 

Help and guidance appreciated from any financial chaps/chapesses!

 

(the company are not helpful at helping me get to the bottom of this).

 

You should check the HMRC website for the CGT thresholds or phone your tax office : you don't pay tax if the gain is below a certain amount. See below (knicked from the Yougov website).

 

Capital Gains Tax is a tax on capital 'gains'. If, when you sell or give away an asset it has increased in value, you may be taxable on the 'gain' (profit). This doesn't apply when you sell personal belongings worth ?6,000 or less or, in most cases, your main home.