I work for a multinational.
part of my package is a shares entitlement from our UK head office. Shares traded in UK. Shares are awarded and vest after 3 years subsequent service
I pay tax on the shares entitlement as income in the year that they vest and are available for use, whether I sell them or not. Pretty annoying hit to the tax bill every year!
Obviously i would also pay a capital gains tax when the shares are eventually sold (if they go up, and loss if they go down).
My question is if this capital gain/loss is measured purely on the change in share value in its base currency or whether the change in exchange rate between GBP and AUD over the same period is taken into account. If it is taken into account, how is this done?
part of my package is a shares entitlement from our UK head office. Shares traded in UK. Shares are awarded and vest after 3 years subsequent service
I pay tax on the shares entitlement as income in the year that they vest and are available for use, whether I sell them or not. Pretty annoying hit to the tax bill every year!
Obviously i would also pay a capital gains tax when the shares are eventually sold (if they go up, and loss if they go down).
My question is if this capital gain/loss is measured purely on the change in share value in its base currency or whether the change in exchange rate between GBP and AUD over the same period is taken into account. If it is taken into account, how is this done?