As a UK tax resident, your sale of shares from an employee share plan purchased before you moved to the UK will generally be subject to UK capital gains tax (CGT) rules on any profit you make from the sale. This is because, as a resident, you are liable to pay CGT on gains from assets worldwide, including shares acquired through foreign employee share plans.
Since you acquired the shares before moving to the UK, you are taxed only on the increase in value from the date you became a UK resident. In other words, the market value of the shares on the day you arrived in the UK serves as the starting point or “cost basis” for calculating your capital gains.
For the tax year 2023-2024, the standard CGT exemptions and rates apply. You are entitled to the annual CGT allowance, which is £6,000 for the 2023-2024 tax year. Any capital gain exceeding this threshold will be taxed at a rate of 10% if you are a basic-rate taxpayer or 20% if you fall into the higher or additional tax bands. The only exception to this is for gains on residential property, which is not relevant here, as these rates are slightly higher at 18% and 28%, respectively.
When calculating your gains, you will need to factor in exchange rates, as the shares are held in euros. The gain is determined by converting the value of the shares from euros to pounds using the exchange rate on the date you arrived in the UK (for the initial value) and the rate on the date you sell them (for the sale value). This ensures that your gain is accurately calculated in GBP.
Generally, no specific CGT rules apply to foreign employee share plans unless the shares are part of a UK tax-advantaged scheme, such as an Enterprise Management Incentive (EMI). However, because your shares are listed on the Amsterdam Stock Exchange and are held in euros, they are unlikely to qualify for these UK-specific tax-advantaged schemes. Therefore, they are treated as personal assets, and you will calculate the gain using the standard CGT rules.
Once you sell the shares, you must report the transaction in your Self Assessment tax return for the tax year of the sale. Typically, CGT payments are due by January 31 following the end of the tax year. In the case of property-related gains, there’s a 30-day reporting requirement, but this does not apply to share sales.
If you have already paid capital gains tax in another country on these shares, you may qualify for some relief under the UK’s double taxation treaties, but this is less common in cases where only a capital gain is realized in the UK. Given the cross-border nature of this situation and the involvement of foreign shares, it could be worthwhile to consult a tax advisor who can help ensure all applicable allowances and reliefs are claimed, especially if the [URL=https://zumbaliciouscrew.com/en/zumba-on-demand/]here[/URL] holding is substantial or complex.
In summary, you should be able to apply the usual UK CGT allowances and exemptions when selling these shares, treating them as personal assets without additional restrictions due to their origin in a foreign employee share plan.
