Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Fri, 24 Nov 2023 23:27:03 GMT by donato
Hi, Let's assume I have stock options that were fully vested/or partially vested here in the UK. What would happen if I move to Italy and exercise them once I become a tax resident there? For the double tax treaty shall I just pay taxes in Italy? Or do I have to pay them in UK? What is the correct approach to avoid any problems? Regards
Posted Tue, 28 Nov 2023 11:57:43 GMT by HMRC Admin 5

You would need to declare the disposal of stock/share options to HMRC, as they are taxed as income.  
Helpsheet HS305 provides more guidance on employment related shares and securitites
Employment-related shares and securities (Self Assessment helpsheet HS305)

Thank you
Posted Tue, 28 Nov 2023 12:50:03 GMT by donato
Interesting, but would I not get taxed twice in that case from Italy as well? Also if it is taxed as income and I don't earn any apart from this in the UK, I am assuming I would follow the classic bands: - 0% up to 12570 - 20% up to 50270 - 40% up to 125k, etc Is that correct, so anything below 12570 in a tax year where the only thing I earned are the earnings from selling the stock options would be 0%? Correct? Regards
Posted Thu, 30 Nov 2023 12:16:26 GMT by HMRC Admin 10
The national tax rates are the same as those you mention.  
If you qulaify for personal allowances, these would also be included in any tax calculation.  
Have a look at the SA109 notes for boxes 15 and 16, to see if you can claim personal allowances.

You must be signed in to post in this forum.