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Rising Star
You've already paid tax on the 15% discount when buying the shares through shares with held. Then when you sell them, you'll see the shares you have and the price you bought them for at the time.
(Current price - original price) x number of shares sold = profit per batch
Repeat for each batch of shares because they'll have different purchase price and add the total
Thanks so much! That’s so helpful 👌
Is the cost basis to be calculated as price with discount, or is it the fair market value at time of vesting?
In the USA, cost basis is FMV at time of vesting, I had to fill out a form to update the cost basis. Here in UK however, I can't get a clear answer.
HMRC are all too happy to use discounted cost which doesn't seem right considering we're paying tax on this benefit in kind.
Thanks in advance!
Rising Star
The portal shows you the purchase price at discounted price.
Depending on your tax setting, if you've already paid the capital gains tax for the 15% discount at time of purchase , then use FMV when calculating your capital gain when you sell your share.
If you've opted not to get tax deducted at time of vesting, go with the purchase price to calculate your capital gain at time of sale.
Otherwise you'll be paying twice for the 15% discount you've received.
I'm based in UK so talking from a UK tax payer view point.
If You're not sure of your options, might be worth talking to a tax account. They'll help you this time and probably advise you on the most effective way to invest. Worth a couple of hundreds for a one off advice and some usually give you a bit of a freebie to encourage you to use their services
Linked question - I did self assessment over the weekend and couldn’t find anywhere easily on myHoldings/UBS which gave a nice clear report on dividends and capital gains for the fiscal.
Would have thought this to be a base reqt or have I missed a button to click somewhere?!