RSU disposal time

My employer gives RSU as part of income. They have a program, called ETP, working as follows: 1. you sign up for automatic sale of stock during a fixed enrollment period 2. after 70 days, the sales start and continue for 12 months. The stock is sold immediately after it settles following a vest, ie. on V+2 day. 3. you can cancel the program anytime by giving 60 day notice (during which the program is active). After reading CG14270, do I correctly assume that the disposal date when using ETP will be the day of vest, given that the ETP-originating sale is immediately binding, even if executed two days later? If so, should I report the CG corresponding to the same-day pool (as opposed to 30 day / 102s ones), ie. V+2 sale value - V cost?

Hi igys,
Selling the shares immediately upon vesting, ensures that there is no gain to tax. If you still want to hold the shares, you could buy them back in a stocks and shares ISA.
This ensures that any future growth is tax-free (although you may still pay withholding taxes, particularly if the shares are held in a US company).
If you hold the shares within a SIPP, any future growth is tax-free and no withholding tax will apply (assuming that your pension administrator has set it up correctly!). 
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's 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'.  
ERSM20193 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. 
Thank you.

Thank you for the message. Would you be able to advise wrt. the answer to my question, though? It related to how, if at all, to report capital gains resulting from the sale originating from the ETP program, described above. Unfortunately, for various reasons, the suggestions in your post are not applicable here.

Hi igys,
You have referred in the question to CG14720, but that page refers to conditional contracts.
There is no suggestion from the information provided that there are any conditions to satisfy within the short, 2-day period from vesting to the transfer of the shares.
Please refer him to Capital Gains Manual CG14260 - Computation: rules determining date of disposal and the information available on unconditional contracts, which states, 'If the disposal is made under an unconditional contract the date of disposal is the date the contract is made. It is not the later date when the asset is conveyed or transferred to the purchaser'.
If he has doubts that he is contractually committed to transfer the shares on the date of vesting he should check with his employer.
If however, he is satisfied the unconditional contract rules apply on that date, then for capital gains calculation purposes those shares would be subject to the 'same day' rule.
Thank you.
 

   

Thank you for clearing that up. My doubt regarding conditional/unconditional contracts came from the fact (as per the above) that the contract to sell is effectively binding already 60 days before vest (conditional on the vest happening). Do I understand correctly, that when the unconditional contract rules apply, the capital gains should still be calculated and reported within the pool (taking into account the difference between sale value at transfer and the fair market value at vest)?

Hi igys

If the disposal is made under an unconditional contract the date of disposal is the date the contract is made.
It is not the later date when the asset is conveyed or transferred to the purchaser.

Thank you

Thank you for your message. Do I understand correctly, that when the unconditional contract rules apply, the capital gains should still be calculated and reported within the same-day pool (taking into account the difference between sale value at transfer and the fair market value at vest)?

Hi,
That is correct.
Thankyou.