Amazon RSU stock award - can i gift?

sophlouwhit

Was enquiring if anyone knows if on vest you can gift to someone else, say partner, to avoid tax and implications?
im basically hoping we can have shares vest and gift to someone else for them to sell and pay tax on vs the higher rate tax payer? Thats basic goal here - can anyone tel me how possible this is? Thanks

sophlouwhit

[Deleted User] said:

sophlouwhit said:

Was enquiring if anyone knows if on vest you can gift to someone else, say partner, to avoid tax and implications?
im basically hoping we can have shares vest and gift to someone else for them to sell and pay tax on vs the higher rate tax payer? Thats basic goal here - can anyone tel me how possible this is? Thanks

You can't assign the RSU before vesting under the rules of the Amazon 1997 Stock Incentive Plan.   Even if you could, the PAYE/NIC on vesting would stay with you.  

After vesting you will only be subject to capital gains tax on any growth in value.  Post-vesting, you could transfer the shares to someone else.  

Previous shares have vested and gone thru income tax instead of Cap gains… at 50% basically.
i was hoping to have the vest pay the tax required in america on vest then gift to someone else would could withdraw them at a lower then 50% tax.. are you saying that even if gift them they get subjected to 50% income tax? Thanks

london.cidade

that would be brilliant.  half of it goes to taxman at the moment

sophlouwhit

Yes i understand they have to vest before gifting, but i am pretty sure (tho it has been about 3 years) that this is subjected to American taxes when choosing sell to cover tax option? Being its held in american stocks/an american account at the moment (morgan stanley) if i sell they tend to add to PAYE as if amazon has paid me this as a income vs cap gains... so as above says, over 50% disappears in essence, so was looking at ways to avoid this and if its even possible to avoid?

sausage_time

I work for a US company and move RSUs to a joint account with my partner as soon as they vest.  This gives us 2X CGT allowance.  The joint brokerage account is with the same broker.  

Nothing can be done about PAYE.