This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.


Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

47% Tax dedication on company shares

Posts: 1
Joined: Mon Jan 09, 2017 4:32 pm

47% Tax dedication on company shares

Postby stevec_12345 » Mon Jan 09, 2017 4:38 pm


I have been given company shares that have vested and I cashed them in. As the shares are form a US company my trading account setup was also in the US (E-Trade). When I sold the shares I had a 47% deduction of tax. The company I work for gave me the 7% in my next monthly pay, but I was taxed again on the money given back, but at 40% this time. Am I missing something here? Should I have had the full 7% back or should I be paying tax again on something I should not be taxed on as I should only be taxed at 40% anyway.

Thanks in advance and I hope the above is clear.


Posts: 216
Joined: Mon Jan 09, 2017 4:12 pm

Re: 47% Tax dedication on company shares

Postby AmanSood » Mon Jan 09, 2017 6:02 pm

Hi Steve, this is a common issue/query where shares vest (not in cash but in actual shares). The net value of the shares (after tax/NI) will have been transferred to your shares account. It may be the case that your company sold too many shares to cover the UK tax and therefore have refunded some of the over-withheld tax to you via the payroll. It's worth checking this with them.
Advising on UK employment, expatriate and personal taxes
+44 (0) 207 846 0155

Return to “Income Tax”