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.
- Capital Gain? 413 11
- IHT Query 72 2
- Reversing out RTI 125 5
- When should i raise VAT invoice after pro-forma payment received? 299 9
- Abandoning accountancy membership in order to operate as a sole trader 854 22
- Gift or Capital Gain? 306 8
- Sage instant bank rec - is it possible to clear past transactions and reconcile from a given month? 274 6
- BrightPay 618 18
- Classic cars investment 244 7
- Are Court and tribunal Judges honest/commit fruad ? 239 3
- Client charged VAT by US supplier 326 7
- What are CIS subcontractor clients worth to you ? 352 7
- New Company - Corp Tax Period 275 9
- Fees for dealing with auto-enrolment 276 2
- H&W company 257 3
- VAT on sale of Vehicle 213 3
- tax teatment of index linked mortgage repayment 175 2
- How much?? (ACCA rules on practice insurance) 198 1
- Does anyone use a cloud based payroll software 812 32
- VAT silly question 2,418 56
- Benchmarking 498
- Possible Partnership? 444
- Lunatics in charge of the asylum - Bluestone 416
- Tax and accounting treatment on long lease granted from freehold 416
- Old Books for a 'NON' Client 362
- Purchase of property freehold - capitalisation of costs 217
- Growing Limited Company concerned about assets if something goes wrong 213
- Clubs and Taxable Income 205
- Income tax on foreign dividends 196
- Subsistence and hotel expenses 190