CGT - Long Term Incentive Plans

In 2019 I was awarded an option to acquire 383 shares in my then employer, subject to the terms and conditions of their staff Long Term Incentive Plan. The award vested in April 2022 and I chose to sell all the shares at the point of vesting rather than holding the shares. In order to proceed with this option the company sold sufficient shares to meet Income Tax and NIC obligations. In my April 2022 payslip I have the following entries: Payments: £1,705 relating to the Share Option being exercised Deductions: £882.34 relating to the Share Option Advance - I believe this would relate to the income tax, NIC obligations and dealing costs relating to the Share Option being exercised. As I am preparing my 2022/23 self assessment I am looking to understand whether I have any form of Capital Gain reporting obligation? As the amount received (both gross and net) is lower than the CGT exemption does this mean there is nothing to include on my self-assessment?

Hi,

As you sold the shares immediately upon vesting, there is no Capital Gains Tax to pay.

As the payment is from your employer, the income should be shown in the employment section if it is included in your P60. If it is not included in your P60, please include it on the box on the employment page for 'Tips and other payments not included on your P60'.  The following guidance advises that when RSUs payout at the market value on what is called ""dividend equivalents"" in either cash or shares, such payments will generally be taxed as earnings in the year they are received.  

ERSM20193 - Employment-related securities and options: what are securities: RSUs and dividend equivalents

Thank you.