RSU shares surrendered for PAYE taxes - do they form part of my CGT calculation

I am an employee of a UK company and receive RSU in a US company. These are taxed by my employer in the UK. In order to pay the UK taxes due my employer sells a proportion of my shares, which is included on my UK P60. When completing my self-assessment tax return capital gains pages do I include the cost of the shares surrendered to cover UK PAYE taxes in the CGT calculation to see if I exceed the 4 x CGT allowance?

Hi,

The vested RSU are charged against Income Tax and not Capital Gains Tax, so they should not be declared on the foreign section for capital gains. As the payment is from your employer, the income should be shown in the employment section if it is included in your P60. You would then claim credit for the Tax in the foreign section under 'Employment, self-employment and other income which you paid foreign tax on'.  

If it is not included in your P60, please include it in the box on the employment page for 'Tips and other payments not included on your P60'. 

You can see that 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.

 

Please can you clarify the sentence you state above "You would then claim credit for the Tax in the foreign section under 'Employment, self-employment and other income which you paid foreign tax on" To be clear I'm a UK resident who works for a UK employer and I pay UK taxes on RSU's via PAYE. Is the sentence in question a case of IF I had any foreign tax stopped in addition to the UK tax enter a figure in the foreign pages? Or are you saying the UK amount of tax stopped by HMRC should be included on the foreign pages?

Hi HT R,
Where the RSU is a foreign stock unit.
Tax is paid in the overseas country of the stock unit when it is vested, which allows you to claim this as a credit against UK tax, to avoid paying the same tax twice (double taxation).
Thank you.