Bonus share award UK Tax implication

Jack10801

At a company I previously worked for, my bonus award was made in shares. Depending on performance, these shares vested after 3 years. The VSA account is held in Computershare and in the transaction history, at each point of shares vesting there are two entries - transfer to VSA and withhold for Tax.

Approx 52% of the awarded shares are being withheld for tax - is this to cover Tax (at 40%) and NIC (at 12%)? If this is the case, why is the higher rate of NIC payable?

I'm trying to work out whether I have any additional tax / NI to pay at the time of selling.

Thanks

AndyT678

I would expect you to pay income tax and NI at your marginal rate when the shares vest. 52% feels odd though. Are you sure it's definitely not 42%? That would make more sense to me.

There is no further income tax or NI due when you sell but you might have a CGT liability depending on how much they grow in value in the meantime.

HouseBuyer77

Employers NIC as well as Employees NIC is due on such awards, however for share awards the employer can make you pay their part of NIC as well as your own. This results in the 52% rate of tax.

Jack10801

Thanks for responses - really helpful :-)