RSUs withheld for tax and CGC reporting

Hello, I receive RSUs few times per year by my employer. On vest day approximately half of the RSUs are withheld to pay tax. I've been advised by my employers that if the total amount of RSUs withheld is exceeding 4 times the CGT allowances then I should report it in the CGT section of tax return (SA108), by filling boxes 24 (Disposal proceeds) and 25 (Allowable cost) with the same value, which is the total amount from tax withholds. My questions is the following: If the tax withholds exceed 4x times the CGT allowances and I also have a sell event from the same share that occurs gain less than the CGT allowance what shall I declare in boxes 24 and 25 of SA108? My understanding is that in box24: amount of withholds + amount of sell and box 25: amount of witholds + amount of purchase Is that correct?

Hi jmjq,
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.
ERSM20193 - Employment-related securities and options: what are securities: RSUs and dividend equivalents
If you hold on to the shares after they vest and dispose of them at a later date for more than the vesting value, you would be subject to Capital Gains Tax on the difference. If tax was payable, you would either report the gain using:
Report and pay your Capital Gains Taxbefore 31 December or on a Self Assessment Tax return.  
If the value exceed £49200, you would report the gain on your tax return even if you have reported using the reatime service.
You would record the gains using boxes 23 to 30 on SA108 page CG2.
Thank you. 

 

Thank you for your reply. What I try to understand is a bit different. My question does not concern income tax from RSUs, it is specific to how I fill the SA108 form regarding CGT. To add some more context around my question and be specific. Within a tax year I have: (a) 1000 RSU (listed shares) vested (b) 480 RSUs were withheld by my employer for tax purposes (total value of RSUs withheld is £50,000) (c) I end up getting 520 RSUs (total value of RSU deposited in my account is £54,166) (d) Later in the tax year I sold 100 RSUs resulting in £1000 gain. (for this transaction cost basis £10,416 and disposal £11,416) So I had one disposal (d), disposal proceeds: £11,416 and allowable costs £10,416 There is also (b), employer withholding RSUs and selling them to my cover tax. The gain here is zero but proceeds and allowable costs are £50,000 each. Based on this context, what shall I fill in boxes 24 and 25 of SA108? - Disposal proceeds: £11,416 or £61,416 - Allowable costs: £10,416 or £60,416 Thank you very much!

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 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'.  

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. You can see guidance here:

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

Thank you.

Thank for your reply. Unfortunately, it does not answer my query. I am looking guidance on how to fill the Capital Gains Tax form for the particular situation I am describing in the post above and not regarding income tax. I'd appreciate any clarification on Based on this context, on how to fill boxes 24 and 25 of SA108 within the context of my post above.

Hi,

You would show only the figures the 100 RSUs were disposed for and their cost, to arrive at the gain.

Thank you.

Hi jmjq

As previously stated, we cannot comment on scenarios.  
SA108 guidance notes advise:-
Box 24 Disposal proceeds - Put the total disposal proceeds (before taking off any reliefs, claims or elections) in box 24.
Box 25 Allowable costs (including purchase price) - Put your total allowable costs in box 25.
You will need to seek financial advice, if you want to be told what amounts go in these boxes.

Thank you