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.
- How much did you pay for your website 1,200 22
- Dispensing with accounting periods, with nested ledgers. 208 4
- Fastest Software 647 11
- Self Employed Self Assessment: Capital Allowance and Car Lease/HP 94 1
- Where did it go? 229 2
- cancellation of Engagement 127 2
- Seed Enterprise Investment Scheme Charges 85 1
- Feuding directors 239 8
- VAT Registration for Building Company 96 2
- FILING COMPANY ACCOUNTS 483 12
- Vat threshold issues 1,895 14
- Company Accounts - Limited company 608 5
- Use of Home for Sole Trader 230 4
- Vodaphone Share Scheme 91 1
- Benefit fraud 3,418 49
- SA Tax Returns 152 3
- Agent Change of Postal Address 139 2
- Consolidated accounts 123 2
- On line petition re HMRC grabbing money from taxpayer bank accounts 1,024 24
- How to deal with a prior year CT adjustment 357 12
- CTA study material 650
- Anyone have clients that use Pay4Later to offer customers credit? 393
- Employment related securities question 244
- ATED Penalties 219
- AIM Stocks and IHT 198
- Tax Relief for overseas employees 168
- Trust for Employee 152
- Expat pension contributions? 149
- Staff accommodation without a rental value or RV 134
- Capital allowances 121