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Ahhh that's interesting, thanks. Sometimes I can't tell if I'm reading US or UK tax advice on the web but it looks like she may only pay income tax on the share value at point of vesting and then capital gains tax on any profit.
You're correct that she gets these annually with seemingly no performance conditions attached other than a greater allocation with promotion. I wish I could go back twenty years and work for TJX!
inchpincher-
That is correct, that she pays income tax on the value of the shares when they vested and capital gains on any profit subsequently.
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Ok given the amount of gains and presumably amount of shares I would work with an IFA. Selling them all in one bunch at this point wouldn’t seem to be prudent. Potentially disposing it some each year to make use of annual CGT allowance and also depending on where your wife is in the income tax threshold.
You might also want to look at any other shares or assets which could be used for offsetting loses against CGT gains
andyp
Tenderloin
One thing would be that if you haven’t cashed out the vested shares and they have made accretive gains on the price they were issued at then you would need to pay cap gains tax.
As a rule of thumb you would sell you shares on the day they vest and if you feel strongly about the potential future growth re—buy in a S&S isa rather than hold onto them. It sounds like your wife has continued to be given more rsu’s over the years which have then continued to vest. A standard would be 3-4yr vesting window with say 25% after year one and then quarterly or annually after that.
If it’s going through payroll then you might also look at putting as much through directly into pension contributions as possible as this might work out more tax efficient.