Tax Credits and Shares...

gabby71

Hi

The company I work for gives employees free shares every 6 months, you can cash these in after 3 years and pay tax on them, or after 5 years and get them tax free - as my daughter will turn 17 in 5 years I hope to keep them for 5 years and be able to get her a car/driving lessons and a help towards university (fingers crossed).

Will the money from these shares be taken into account in my tax credit renewal?

I know it's a long way off yet, but if that is the case I may be just as well cashing them after 3 years and paying tax?

Any advice?

cheers

Gab

AnxiousMum

Technically, these shares arent 'yours', ie, you cannot cash them for 3 years minimum right? So I would think that for this year, you do not claim them as income as you don't physically have access to them. After the three years though and you do have the ability to take ownership of them, they would surely be income then? Is this the first lot of shares you have received or do you have some that are coming up on the 3 years?

gabby71

I only started with the company last year - will not have access to any shares for over 2 years.