Cooper Zirtec
Joined: 7/17/2024
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RE: Selling US stock issued by employer
Hi, the stock option is sold and the Broker in the USA took account standard withholding rate of 47% to cover UK additional rate tax (45%) and NICs (2%). Do I now need to contact my former employer to request the 47% withholding to be returned to me, or will it somehow be credited by my former employer against my tax ID. How do I get proof of that? Thank you. -
RE: Selling US stock issued by employer
You are missing the part about about I am no longer employer by the company that issued the stock. No payroll, No P60. My understanding is the Broker in the USA will take into account standard withholding rate of 47% to cover UK additional rate tax (45%) and NICs (2%). Now this is the important bit I don't understand. Credit is then given in the UK payroll against the actual PAYE and NICs for the amount withheld by the US Broker. But I am no longer on the payroll. Then would follow any balancing / refund due to the UK employee whose marginal rate is less - say 40% and not 45%, which is settled by a further payment by the UK payroll. What do I need to do? -
RE: Selling US stock issued by employer
Hi, sorry I have ready back my question and need to reword: Remember, I am no longer employed with the company that issued the stock option. No payroll, no P60. The US Broker will pay my net profit directly into my UK bank account. The US Broker will retain 2% and 45% tax. Does the 2% and 45% collected taxes go to my previous employer? How is this then redirected to me? Please explain what you mean by claim credit? Do I need to pay tax on US stocks if I live and work in UK? -
Selling US stock issued by employer
I am UK citizen living and working in the UK. In 2023 I was issued a Stock Option from my US owned employer. I left the company in early 2024, and my stock option will soon be vested and I can buy / sell. When it comes to selling I am told the US broker will follow the company procedure which is to withhold taxes on the gains of 2% for NI and 45% income tax. My question if this tax is collected by my old employer; where does it then go? I am not on the payroll. And, I plan to sell immediately on vesting. Is capital gain tax applicable.