Vesting of company shares / Child Benefit

ambercelery

hi

I was awarded some shares by my company when i joined which are now vesting.
There are 3 options (a) Sell (b) Sell to cover and (c) hold all.
With option a, the company shall deduct the amount to pay the tax etc and then give me the net proceeds. (if i sell on the day of vesting, there will be no capital gains to pay)

My current net salary is just below the 50k threshold so my wife is still eligible to claim child benefit for my 2 children.

However, my question is do i need to include the net proceeds from my vested shares on top of my salary - as being the figure used in calcuating child benefit...
or is the vesting share amount except from this calculation

xylophone

http://ld.practicallaw.com/9-107-4444#a62142 does this help at all?
http://www.hmrc.gov.uk/working/bens-shares-tips/shareschemes.htm
http://www.hmrc.gov.uk/adjustednetincome/

Incidentally, in respect of CGT if you wish to keep the shares had you considered using the ISA route?
http://www.hmrc.gov.uk/isa/faqs.htm#19

"A. You can transfer any shares you get from

an HMRC approved SAYE share option scheme run by your employer (that is, a savings related share option - 'Sharesave' (or profit sharing scheme)
a Share Incentive Plan
into a stocks and shares component of an ISA without having to pay Capital Gains Tax - provided your ISA manager agrees to take them. The value of the shares at the date of transfer counts towards the annual limit.

This means you can transfer up to £11,280 worth of shares in the tax year 2012-13 (assuming that you make no other subscriptions to ISAs, in those years).

You must transfer the shares within 90 days from the day they cease to be subject to the Plan, or (for approved SAYE share option schemes) 90 days of the exercise of option date. Your employer should be able to tell you more."

ambercelery

Thanks for the reply.
Unfortunately, those links do not actually answer the question I have.

Say for example, my net income is currently £49k. My wife and I are eligible for 100% child benefit under the new rules.
If I then vest some shares, where my company pays the required taxes etc from the share sale and then pays me the remainder - lets say £6k - does this then get added into what I declare as being my net income i.e. it is now £55k - so I would only be eligible for 50% of the child benefit. OR are income from share vestings not included in the net income.

Alternatively, if i were to not "sell" my shares - but "Sell to cover" - my company would sell enough shares to cover the tax, and then give me the shares i.e no cash payment.
Could I then transfer these shares into my wifes name - who currently is not working - and then she can sell them for the 6k - without taking either of us over the 50k net income threshold impacting child benefit ?

xylophone

As far as I ( no expert) can see, you would need to read the HMRC link on share schemes and establish the category into which these shares fall and the tax treatment.

You would then need to do the adjusted net income calculation.

Otherwise your best bet would be to discuss the matter with HMRC?http://search2.hmrc.gov.uk/kb5/hmrc/contactus/view.page?record=LNktdzH4gr0