Selling US Shares from employee scheme

scg1889

Hi I have shares in a US Stock held by US stockbrokers which I received from my (ex) employer 15 years ago. I have completed the W8-BEN form over the years so wanted to check if any tax implications selling them (worth under £40k). My understanding was W8-Ben form means don't pay tax in the US and reading the Gov website as these were a gift from my employer under £3.6k a year they wouldn't be tax implications on our side of the pond? Thank you for any advice in advance

eskbanker

W-8BEN addresses the taxation of dividend income on these shares but doesn't shelter you from capital gains tax if the gain when selling exceeds the annual CGT allowance.

scg1889

eskbanker said:

W-8BEN addresses the taxation of dividend income on these shares but doesn't shelter you from capital gains tax if the gain when selling exceeds the annual CGT allowance.

Thanks for that info, so the tax on the capital gain is that paid to the IRS in the States or to our Inland revenue? 

eskbanker

scg1889 said:

eskbanker said:

W-8BEN addresses the taxation of dividend income on these shares but doesn't shelter you from capital gains tax if the gain when selling exceeds the annual CGT allowance.

Thanks for that info, so the tax on the capital gain is that paid to the IRS in the States or to our Inland revenue? 

If you're a UK tax resident then CGT will be payable to HMRC.  Are you perhaps in a position to stagger the sales across multiple tax years to avoid exceeding the £12,300 threshold in any individual year?

scg1889

eskbanker said:

scg1889 said:

eskbanker said:

W-8BEN addresses the taxation of dividend income on these shares but doesn't shelter you from capital gains tax if the gain when selling exceeds the annual CGT allowance.

Thanks for that info, so the tax on the capital gain is that paid to the IRS in the States or to our Inland revenue? 

If you're a UK tax resident then CGT will be payable to HMRC.  Are you perhaps in a position to stagger the sales across multiple tax years to avoid exceeding the £12,300 threshold in any individual year?

I would be able to stagger but I thought from what I read on Gov website that since I'd received them in an employee share plan (15+ years ago) and received them for free they would be exempt? 

eskbanker

But is the scheme via which you acquired these shares a qualifying UK SIP, and if so, are the shares still held within the plan itself (your reference to a US broker, W-8BEN, etc, suggests not)?

scg1889

eskbanker said:

But is the scheme via which you acquired these shares a qualifying UK SIP, and if so, are the shares still held within the plan itself (your reference to a US broker, W-8BEN, etc, suggests not)?

Hmm yes good point. I think I'll struggle to find that out too! May just need to err on the side of caution and sell gradually.