Share Options

obsessed_saver

My understanding (from my company's own HMRC unapproved stock option from parent US company) is that the granting and vesting of the stock options are not taxable events (otherwise you will be liable for tax even if you don't exercise them). It is only when you exercise them that it becomes a taxable event. In this case, it is treated as income, and not CGT. So, when your husband exercised his option in the UK, he is already resident in the UK for tax purposes. Exercising his stock options becomes a taxable income event.

Londonboy_3

obsessed_saver wrote: »

My understanding (from my company's own HMRC unapproved stock option from parent US company) is that the granting and vesting of the stock options are not taxable events (otherwise you will be liable for tax even if you don't exercise them). It is only when you exercise them that it becomes a taxable event. In this case, it is treated as income, and not CGT. So, when your husband exercised his option in the UK, he is already resident in the UK for tax purposes. Exercising his stock options becomes a taxable income event.

An exercise of options is generally only taxable in the UK if it was granted whilst resident in the UK. In this case as taxpayer was resident in Bermuda at grant and non resident in the UK, no UK tax on exercise.

Pumpkinface_2

Londonboy wrote: »

An exercise of options is generally only taxable in the UK if it was granted whilst resident in the UK. In this case as taxpayer was resident in Bermuda at grant and non resident in the UK, no UK tax on exercise.

Oh I like this answer best. :rotfl:

I am getting so many different answers though (I don't mean on here, from other people I have asked too), it is a complex area indeed.

dizziedaisies

Hello, could someone explain to me the difference between RSG and stock options. I have some share options from US company (am UK resident), which I have exercised. They had a special early exercise clause and because the company is unquoted I paid market value for the shares. There is a restriction on the sale that I can't sell for 1 year and company has first refusal. My US colleagues are having to fill in forms for the IRS but my understanding was that as I paid MV for the shares I don't need to worry until I sell them and (hopefully) make a gain.

Can anyone help???