Hi,
My company awards shares to employees as part of their salary reviews and it vests over a 4 year period. (i.e. 4000 shares, 1000 vests after year 1, another 1000 vests after year 2 etc...). My first shares vested last year and I am liable for tax this year.
Is this just BIK? Is that rate 20%? I originally thought it was the same as the income tax rate (41% last year) but when I entered in on ROS online, it was calculated at 20%. I have put it under Taxable Benefits (not taxed at source under PAYE) > Shares/Securities. Is this correct?
By the way, this is not a discounted share scheme where I have the option to purchase shares at a 15% discount where I need to pay income tax on the 15% and CG on any gains thereafter.
My company awards shares to employees as part of their salary reviews and it vests over a 4 year period. (i.e. 4000 shares, 1000 vests after year 1, another 1000 vests after year 2 etc...). My first shares vested last year and I am liable for tax this year.
Is this just BIK? Is that rate 20%? I originally thought it was the same as the income tax rate (41% last year) but when I entered in on ROS online, it was calculated at 20%. I have put it under Taxable Benefits (not taxed at source under PAYE) > Shares/Securities. Is this correct?
By the way, this is not a discounted share scheme where I have the option to purchase shares at a 15% discount where I need to pay income tax on the 15% and CG on any gains thereafter.