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Where Taxpayers and Advisers Meet

Share scheme and residence

Brightonian
Posts: 99
Joined: Wed Aug 06, 2008 3:31 pm

Share scheme and residence

Postby Brightonian » Mon Jan 31, 2011 7:14 pm

My client is a member of an unapproved share plan. When she was R/OR she was awarded shares in her company. She is now not resident and the shares have vested and the employer has deducted tax at vesting. The shares vest over three years. There are no conditions attached. Is she taxable int he UK given that she was NR when they vested. Any help would be very welcome, as she has to file by midnight!

petergibbinson
Posts: 152
Joined: Wed Aug 06, 2008 3:53 pm

Re: Share scheme and residence

Postby petergibbinson » Wed Feb 02, 2011 5:42 am

This is very complicated but if your client was awarded the shares when in the UK and they vested when non resident/NOR then yes UK tax is due and it is treated as if it is Uk income and goes on the share schemes box in the tax return.
As a corollary any shares awarded when non resident/NOR are not liable to UK tax when they return to the UK (even if they vest when back in the UK)..but the tax rules of the jursustiction they were awarded in apply (so awarded in Dubai no tax, awarded in Singapore whatever the marginal rate of tax is) SIngapore actually make you pay the tax due when you leave the country even if they havent vested yet (based on the share price on leaving Singapore), and if for some reason they dont vest or you make a loss compared to that exercise price you need to claim that back.
It amazes me corporations dont make this clearer to employees to make this all easier.

Brightonian
Posts: 99
Joined: Wed Aug 06, 2008 3:31 pm

Re: Share scheme and residence

Postby Brightonian » Thu Feb 03, 2011 5:29 pm

Thank you for replying. You have confirmed what I thought from the research I was able to do before the end of January but I am aware that this is a very complex area. The employers provided very little information. Thank you for your help-.


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