Free shares

I have invested a small amount in my foreign employer a few years ago and the amount invested was then matched with free shares. There was no guarantee of a return on the free shares as the company had to grow. They have grown and have now been sold. Will the free shares full return be subject to both personal income tax and employees NIC?

HI
No.  The disposal of the shares would be subject to the rules regarding capital gains tax.  Capital gains tax applies to the disposa of assets for more thatn they were acquired for.  Dividends arising from ownership of the shares, would be subject to income tax.

Thanks for the response. Can I just double check this is correct please? I understand that the gain on the amount I have invested will be subject to capital gains tax after the annual allowance but for the free shares I have been granted, are the full proceeds not subject to income tax and employers NIC? (There have been no dividends at all)

Hi Barry,
Shares offered outside of the tax advantaged share schemes, do not have the same tax advantages.
The free shares will be treated as a benefit and will be subject to Income Tax and National Insurance.
You should report the tax and National Insurance through a Self Assessment tax return, if your employer does not deduct these through payroll.
Tax and Employee Share Schemes
Thank you.