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Posted Mon, 22 Jan 2024 19:40:37 GMT by
Hi Team, I am a resident of the UK but not domiciled. I relocated to the UK one year ago and possess RSUs granted by my company, which are based in the US. Currently, I hold shares in three different categories: 1. Shares that vested during my employment in India, on which my employer paid taxes in India. 2. Shares allocated during my employment in India, which vested during my UK employment. My employer paid taxes in both India and the UK based on the grant date, vested date & the move date from India to UK. 3. Shares that vested during my UK employment, on which my employer paid taxes in the UK. My question is: If I sell these shares in the US, generating capital gains, and subsequently bring the money to the UK, what will be the capital gain implications for each of these categories? Are capital gains tax exemptions applicable in these scenarios?
Posted Thu, 25 Jan 2024 15:03:04 GMT by HMRC Admin 5
Hi ravmalpa

Shares that vested while you were resident in India, would not be taxable in the UK.  
Shares that vested when you were resident in the UK, would normally be included in your P60, allowing you to declare them in the employment page (SA102).  
If not included on your P60, you would enter in box 3 " Tips and other payments not on your P60" on page E1 of SA102.  
To claim credit for the Indian tax paid, you would complete the employment section of SA106 and include the tax deducted in pounds sterling.  
You would then calculate the foreign tax credit and claim in box 2 on page F1 of SA106.  If the shares are sold immediately upon vesting, then there is no capital gains liability.  
If you hold on to the share and dispose of them at a later date, then there is a potential capital gain arising.

Thank you
Posted Thu, 25 Jan 2024 18:12:44 GMT by
Hi, I'm interested in understanding the potential implications of capital gains tax. I've already fulfilled tax obligations when the shares in question vested. I currently possess these shares and am contemplating selling them. To reiterate, I'm seeking information on the capital gains tax consequences associated with selling shares that vested during my employment in India and shares allocated during my Indian employment that subsequently vested during my UK employment. Thank you
Posted Tue, 30 Jan 2024 10:52:34 GMT by HMRC Admin 32

Restricted stock units retained after vesting, may be subject to capital gains tax on their disposal. You will need to consider share pooling rules, as these RSUs may have been acquired at different times, you would need to keep records of all your share grants, vesting and income taxes paid on the shares which will help you calculate the chargeable gain for Capital Gains Tax.  
Only then if your capital gains exceeds your annual exemption then, there will be capital gains tax to pay on the gain. 

Thank you.

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