Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Sun, 05 May 2024 09:14:40 GMT by Nikolai
I am a UK tax resident. My UK employer operates an RSU reward scheme related to their US-traded stock which vests regularly through a US broker. Does the same-day sale of the vesting RSU count towards the £50,000 report threshold? Example A: £60,000 of RSUs sold on the same day as vesting. Does the same-day sale have to be reported on my self-assessment? Example B: £45,000 of RSUs sold on the same day as vesting. An additional sale of £10,000 of a completely different stock (for example Vanguard ETF) is made the same year with capital gains under Annual Exemption. Do any of the sales have to be reported on the self-assessment?
Posted Mon, 13 May 2024 14:14:48 GMT by HMRC Admin 5 Response
Hi

Your employer should include the vested shares on your P60, so that you can declare the vesting in your self assessment tax return.  
You would also complete the foreign section, to claim a foreign tax credit for any US tax decucted.  
Sometimes, the amount vested is not include on a P60, where this is the case, you include the amount in the box for tips and other income not included on P60.

Thank you
Posted Mon, 13 May 2024 17:32:46 GMT by Nikolai
Yes, the employer includes vested shares on P60. What I don't understand is: does the same day sale of the vested shares (i.e. without capital gains) count towards the total proceeds £50,000 reporting threshold? And as result all disposal will have to be included in self-assesment even if the gains are under the annual exemption.
Posted Wed, 15 May 2024 14:26:08 GMT by HMRC Admin 10 Response
Hi
If the vested shares are disposed of immediately on vesting, there is no capital gains tax liability; so it would not count towards the £50000 reporting threshold for capital gain.

You must be signed in to post in this forum.