Claiming tax back for shares in the USA

EdSwippet

The_Doc wrote: »

So could this "deferred income tax" be reduced via VCT purchase?

On this, I assume that you cannot simply push more into a pension to reduce the unwanted tax bite here? Your mention of VCTs suggests that you have exhausted other more conventional tax shelters -- perhaps the taper, or the LTA and some form of protection? -- but it seemed worth asking. VCTs are a bit... specialist.

Misery loves company, so if it makes you feel any better about this, on my options I first had to pay employer's NI, and then employee's NI and income tax on what remained. That year, more than 50% of this income element was taken in tax and NI combined. (This crossed my own personal Rubicon. I gave up work entirely soon after.)

The_Doc

Yes, I am over the LTA and have FP2016, so no more pension contributions for me. So considering VCT to remove what little income tax I do pay. Nice problems to have, so am not complaining, but I just thought 47% was a bit steep. If there are automatic processes in place to refund the over payment, then that's fine. But if its form filling, then a lot of people won't bother.

I sympathise with your dual NI and income situation with your options. Being a self-employed contractor I can control my taxes much better. I am close to retirement, working part time, so won't be heading back to the treadmill full time ever again.