GLTR Shares - Sell to Cover

mauraf

Hi there

I was awarded circa 9000 GLTR shares from my employer a while back, and opted to sell some to cover tax liability etc etc.

Over half my shares were sold to cover this liability - which I thought was alot, given I didnt 'sell' any as such and receive a monetary benefit! Can someone advise if this sounds correct or how these work?

Thanks

Maura

gordongekko

mauraf wrote: »

Hi there

I was awarded circa 9000 GLTR shares from my employer a while back, and opted to sell some to cover tax liability etc etc.

Over half my shares were sold to cover this liability - which I thought was alot, given I didnt 'sell' any as such and receive a monetary benefit! Can someone advise if this sounds correct or how these work?

Thanks

Maura

you will have to give us more info than that.

Ardeehey

That's a pretty minimum OP, are you talking about shorting your shares...i.e. selling short to someone else so technically woud haven't sold your ownership of them but yet received cash? More detail def needed.

mauraf

Sorry for vagueness!

I was awarded 9,000 GLTR shares from my employer 3 years ago, and they matured there at the end of May 2013. I had an option to sell them (all) at the end of May, or sell a portion (which the broker would manage) ie sell some shares to cover your estimated tax and social security liability.

I opted for the latter option, and found my (actionable) holding reduced now to just over 4000 shares (from 9000). Just seems to be alot to me, and I effectively have nothing to show for it ie I received no cash.

Could be correct - suppose I am just a bit peeved that shares I thought I had are no longer there! Plus, what happens now if I do sell my remaining 4k? Am I still liable for more tax etc?

Thanks!

Maura

Ardeehey

Ok, seems to me that when your shares came into your hands that the preveiling price on offer for the shares (assuming that they are not publicly traded) had probably been decided upon by the business after a consultation with valuers.

What does seem a little strange is that all of the proceeds of the partial sale would have disappeared for taxes etc unless what they have done is guaranteed that your remaing shares would also sell at the same price and they have taken the costs from you for the whole holding of 9000 shares in one block meaning that all gains form the remaining holding would essentially be your profit.

I would suggest clarifying this with your finance guys but that's the only sense it would make to me.

delux

It's standard practice these days, my company does the same thing. The tax is due when you get the shares or when options vest so you either give the cash to revenue or your employer sells some of the shares to cover your tax liability. The reason why it's so high is because it's treated as income from your employer ie. subject to income tax. If you sell the remaining shares you're ok for income tax but still could be liable for CGT depending if you make a capital gain and if that gain is within the tax free limit the revenue give for CGT or not. That's my take on it.