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Where Taxpayers and Advisers Meet

US held stock options - tax position

Jonny21
Posts: 2
Joined: Wed Feb 08, 2017 7:40 pm

US held stock options - tax position

Postby Jonny21 » Wed Feb 08, 2017 8:06 pm

I have stock options held in the USA which I exercise each year. They are given to me as remuneration from my US based company, although I work in the UK and am a UK citizen. When I exercise, the income tax is taken off at source and I receive the balance. Is there any way of reducing this tax (top rate), on these exercises. Or do I just put it down to the cost of receiving free money! Cheers. Jon

AmanSood
Posts: 215
Joined: Mon Jan 09, 2017 4:12 pm

Re: US held stock options - tax position

Postby AmanSood » Fri Feb 10, 2017 8:18 am

Hi Jon, the simple answer is no. The stock you are receiving I assume is by reason of your employment in the Group (US parent with a UK subsidiary) so exercising your stock options is no different to getting for example a bonus which is taxable in the UK as it has been earned in the UK. One point which employers do sometimes get wrong is depending on your earnings in the year, there may be an over withholding of tax on the stock exercise which your employer should be reimbursing to you via the payroll if that's the case.
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155


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