How to find out how much tax will be charged.

dora82

My partner earns just under the 40% tax threshold. His employer (American) currently offers shares which he has accrued for many years. The company has been bought out and he is going to be receiving these shares in three payments over three tax years. Each payment will take him over the 45% tax band as it will be taxed as part of his salary.

I presume he will now be a 45% tax payer until the end of the tax year after the third year. Until he goes back to his normal salary.

Is there anyway we can work out how much he will be taxed on the bonus payment (will it be off his regular tax code or will he pay 45% straight away) and then the subsequent normal months when he will be paid his regular £3200 before tax etc.

Hope this makes sense.

AhmedY123

Hey there, you can use the income tax calculator on TaxScouts website to get a rough estimate.
If you have any further questions, feel free to shoot me a message.