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Posted Tue, 12 Nov 2024 15:35:27 GMT by PAD1970
Hi I am part of a long term incentive plan with my employer which provides shares in the employer (a listed company). The awards are non-cash payments so are liable for the resulting tax and national insurance liabilities. The vesting process sells a number of the shares to cover the tax and NI liabilities due, so my P60 shows the gross amount received and the tax paid. The sale of the shares does not result in a capital gain as the sale is made on the same day as the vesting, so the acquisition price and sale price of the shares are the same. Even though there is no gain on the sale of the shares (so no CGT liability) and the income tax and NI is paid correctly, so my self assessment requires no additional tax payments. My question relates to reporting: If the gross proceeds of the shares sold to cover the income tax/NI are over 4 times the annual CGT allowance, should I report the sale of the shares on the capital gains pages of the self assessment? Thanks
Posted Thu, 14 Nov 2024 16:09:28 GMT by HMRC Admin 19 Response
Hi,
No, as all the income is declared as part of your P60.
Thank you.
Posted Thu, 14 Nov 2024 16:14:53 GMT by PAD1970
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