Tax on RSU

My company issues my RSU (restricted stock units) each year as part of my salary package (work in the UK, US company). They usually vest the next year, and I withdraw via a stock broker. I have the option when withdrawing to 'sell for taxes', so some stock is sold to pay tax the rest given to me. In April 2024, my shares vested at roughly $11.2k shares, with $6.7k sold for taxes, giving me a tax rate of 59.80% on those shares. In April 2023, my shares vested at roughly $2k shares, with $950, taxed 46.80% total. My questions are; Q1 - how much tax in % should I be paying on shares? Is 59.80% correct? What tax is it? Q2 - does CGT apply? So in 2023 the allowance was 6K, so does that mean I should of paid zero tax on the first 6k withdrawal? Thanks

Hi ,
 

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.  See : ERSM20193 - Employment-related securities and options: what are securities: RSUs and dividend equivalents   . If sold immiedialtey on vesting, there is no CGT to pay  . Thank you .

Hi Thanks for the response. Yes they were sold immediately - so no CGT. I do not believe I have paid any ‘foreign tax’. In the break down it simply says ‘local tax’ at 59.80%. The question is what tax should I be paying - is it income tax and NI? NI was on there, at 7% or so. IC is 40% so what I am unsure of is why I have paid 58.9% tax? Fees etc are all seperate.

Hi,
Unfortunately, we are unable to provide specific advice tailored to individual circumstances on this forum.
This forum is for general queries only and is intended to help you self-serve.
You may wish to engage the services of a professional advisor/accountant to assist with your enquiry.
Thank you