At the end of the year I will recive a retention bonus from my employer, approx 1 years salary, in the form on loan notes which are currently held in trust. I am a higher tax payer and obviously want to mitigate my tax liablility. I have some specific questions:-
1) Are these loan notes liable for tax when in the year I receive them or in the year they are cashed in ? 2) If it is the year I cash them, I can presumably defer the tax liability until I retire or my income falls out of the higher tax bracket. 3) I assume they are subject to income tax, not capital gains tax. Is this so, even if I wait to cash them when I have left my current employer (again assuming the answer to 1 is the year I cash them in).Any additional general help would be appreciated.
Gerard Corrigan