I work in the UK for a US company from which I receive a grant of shares
each year. The grants are placed into a US online brokerage and vest (i.e.
become sellable) over a 5 year period. When a tranche of shares vest I pay
UK income tax on the value of the shares at the vest date - i.e. I only
receive 60% of the shares. The shares do not qualify for any employee share
In order to reduce my income tax liability, I'd like to move these shares
into my Sipp which is managed by Hargreaves Lansdown. I'm in the process of
transferring the vested shares into my Fund and Share account with HL from
where I'll move some of them into my Sipp. The shares in the US brokerage
were all broken down into individual tranches (or positions as I think
they're called) so that the value of the shares at the time I received them
is readily identifiable. However, I'm led to believe that once they get
transferred into my HL account I just have a single block of shares - and
that's were I get confused.
In order to move shares into a Sipp it's necessary to sell and re-buy them -
a so called "bed-and-sipp" and at that point I am potentially making a
capital gain - in fact quite a decent gain in the case of some of the
shares. The question is, how do I determine what my gain is when I have a
large amorphous block of shares from a variety of different grants and
vesting schedules? Surely the shares must be kept identifiable within my HL
account - have I been misinformed by the HL helpline? Btw, won't the same
considerations apply with regard to an ISA?
Thanks for any help
- posted 6 years ago