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Posted Mon, 29 Nov 2021 13:19:34 GMT by Shelly G
Please do not refer me to a link to the HMRC website info, as I have looked at it already and find it hard to get specific answers to my questions – thanks much appreciated! As part of my bonus I get RSUs of an American automaker shares, which have vesting dates in the future (usually every March). My understanding to fund the tax and NI due to HMRC an approximate number of shares (based on an estimate of my marginal tax and NI rates) are withheld and sold on my behalf. The total value of my March RSUs vest (based on fair market value on the date of vest) will be included in ‘TPNG’ (Taxable Pay not Gross) in the box headed ‘Total Since April 6’ in my payslip. The TPNG amount for March will be included in my taxable pay for March – Q1. so it’s is included in my P60 income amount and already part of my tax return right?, so I don’t need to list elsewhere on my tax return right? . Q2. this is therefore part of my adjusted net income figure? Plus the tax and NI due on the RSU vests is included in the Tax and “NI D” values in my pay slip Deductions along with the tax and NI for your March salary. Q3. Again the tax on is included in my P60 amount and already part of the tax paid in my tax return right?, so I don’t need to list elsewhere on my tax return right?. Q4. Dividends – if dividends are paid on these RSUs – is it the same tax treatment or do I have to report separately? Again would dividends be included in adjusted net income? Q5. How do I calculate the gain on selling? Let’s say I have 5 tranches of shares that all had different vest dates and therefore different fair market value of the shares at vest. So I work out the gain on each tranche and total them to get the total gain from the sale. Then convert from USD to GBP, using either the HMRC monthly or annual exchange rate at the time (whichever is more favourable)? Q6. Do I have to show on the tax return even if not converted into GBP? If so where? Q7. What if I make a FX gain in the future when I do convert them from USD to GBP (i.e. the rate is better on the date of conversion versus the date of sale?) Do I have to report this and if so where? Q8. Do I have to show at all on my tax return if the gain is less than £12,300? Q9. Where do I show on the tax return? – UK Capital Gains page? Q10. What about the transaction fee charged by my company’s broker / administrator – do I take this off the gain amount? Q11. Net adjusted income – do I have to include the gain in my adjusted net income? And if so not count the £12,300 allowance? Q12. If I made a gain over £12,300 when do I have to pay the CGT? Really appreciate answers to all these questions as I’m not clear from your online guides. Think other tax payers would also appreciate looking at similar questions. We just want to get it right. Many thanks!
Posted Tue, 30 Nov 2021 09:47:23 GMT by HMRC Admin 2

If you are looking for specific advice on your own circumstances then it may be best to contact us directly as each case is dealt with on an individual basis.

Generally, if your RSU's are included on your P60 along with any tax paid then you would not need to enter this elsewhere on the return. This would therefore be part of your taxable income for adjusted net income calculations. The dividends will be reported separately as these will not be run through payroll.

Dividends also form part of your taxable income for adjusted net income purposes.

Personal Allowances: adjusted net income

You can find general guidance on Capital Gains Tax, includng when to pay and how to report here:

Capital Gains Tax

However, if you have shares for the same company acquired at various times, then you can group these into a section 104 holding. You can find further guidance here:

Shares and Capital Gains Tax (Self Assessment helpsheet HS284)

Any gains made will need to be shown on the tax return if the gain is taxable or the overall disposal proceeds are more than 4 times the annual exemption amount. All income on the return needs to be converted to GBP. You can either use the monthly rate or the annual rate.

Any gains would go on the UK gains page but if you also pay any gains tax in the US on these then you would need to enter this on the foreign section and claim foreign tax credit relief.

You can take off allowable expenses from your overall gain such as brokers fees. 

Thank you.

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