US Stock Options Tax
In Jan 2010 (2009/10 tax year) I was granted a US performance-related stock option with McGraw-Hill. I was employed by McGraw-Hill in the UK. The option measured the stock performance in year 1, and then vested over years 2 & 3. It is being paid out now.
I left McGraw-Hill in Feb 2012 (2011/12 tax year).
The award converts units into shares. However, McGraw Hill in UK has advised HQ in NY that 50% "Foreign Tax" should be applied and the value of the option has been reduced by 50% through subtracting half the shares from the award.
McGraw-Hill says this is correct as I was employed by them at the time the option was awarded (at that time I was in the UK 40% tax band). I am challenging this, as I have had no gain from the award so question how I can be "taxed" in the US. I am also W8-BEN registered in US.
So my questions:
* As I am not an employee of McGraw-Hill, (and haven't been for nearly a year) how can they instruct the US to withhold 50% of my award for tax purposes?
* where will this tax be paid
* What about capital gains tax, which was what I was expecting to pay
And the most important question, how can I get this reinstated?
Thanks for any help.
- Bereavment payment 92 2
- Increasing the personal allowance: A top priority? 479 18
- Double tax treaty Italy and UK 98 1
- Anyone Heard of This Outfit? 1,107 7
- Can anyone advise on the best VAT Scheme to change to? 273 4
- Apologies for reposting this but first post was on Friday afternoon! 346 2
- CT600 Computations - Company Tax Return help 1,295 14
- Sage Bank Reconciliation 150 2
- Companies House incorporation service 349 12
- Factors affecting tax charge FRS 19 (marginal rate) 78 1
- P35 and Service Company questions 151 3
- VAT chargeable to conference attendees 193 6
- Is Accountancy Becoming like an Insurance Policy 205 1
- Long period of account for Corporation Tax 267 7
- Flat Rate VAT and EU sales (Non VAT) 143 3
- NIC £2000 Allowance - Care Support Worker 153 3
- VAT, vans, sole traders and business use. 1,598 12
- Share Capital 133 2
- Trading income or not? 199 1
- Charge HMRC 428 3
- Xtuple 549
- Qtac payroll for bureau 376
- Confused - Professional Association a Mutual trader, or not? 320
- Industrial & Provident Societies 314
- Why would HMRC offer to close an investigation by contract settlement 292
- CIS schemes 223
- Domain name sale and limited company 205
- Director legal fees in loose connection to the company 187
- Investment 187
- Italian friend wants to set up a UK company to reduce taxes 178