Financial info

[djchewie]

if someone offers you a % of company equity... how is this taxed?

ta!

 

[Morbyd]

So, the boss trying really hard to get you to stay on?

This is a guess, as I'm not familiar with UK tax law, but I would assume the taxable income is based on the company's enterprise value or a fair multiple of your annual net income.

 

[djchewie]

So, the boss trying really hard to get you to stay on?

This is a guess, as I'm not familiar with UK tax law, but I would assume the taxable income is based on the company's enterprise value or a fair multiple of your annual net income.

in english please!

 

[MARKB]

when you say equity do you mean shares or profit?

If it's profit - ie a bonus - taxed as per usual.

If you're getting shares then you will be subject to capital gains tax then taxed upon your dividend payments.

Taxed up the ass in the UK either way.

 

[Morbyd]

Capital gains tax only comes into play if he sells the shares within a certain time period. You're taxed on the gain between when you acquired and sold the shares (thus the term 'capital gains'). Usually capital gains are taxed at a higher rate.

I think what he'd be taxed on is just the value of the shares as income, like when you have a stock bonus plan or the like.

 

[djchewie]

when you say equity do you mean shares or profit?

If it's profit - ie a bonus - taxed as per usual.

If you're getting shares then you will be subject to capital gains tax then taxed upon your dividend payments.

Taxed up the ass in the UK either way.

doesnt seem to matter either way then if im gonna be taxed to the hilt.

 

[MARKB]

But Morbyd's right about the Capital Gains tax it only kicks in if you sell them, so it's defo. better to have them than not.