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Where Taxpayers and Advisers Meet

Tax on performance unit payment in USD

Posts: 1
Joined: Sat Apr 14, 2018 2:52 pm

Tax on performance unit payment in USD

Postby rdb72 » Sat Apr 14, 2018 3:01 pm

I've received a payment in USD following the buyout of my employer - the company is based in the US and I work in the UK office. I didn't pay for the units, they were vested over a period of time.

Having being advised it would be in USD, I opened a USD account to avoid fees and my Bank's forex rates. The account is effectively offshore as part of the Bank's international wing.

My question is what tax will I need to pay, and when. I've read that it's income tax, CGT, etc.

I don't plan to spend the money for at least a year at which point I assume the money becomes 'onshore' when it converts to GBP.

Any other guidance on how to minimise the tax impact would be most appreciated.

Many thanks in advance.


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