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Posted Mon, 22 Aug 2022 14:06:48 GMT by lost_in_numbers
Hello, I have this situation: in January 2022 my employer granted me a set of RSU with an initial nominal value. They are held in the US. Contextually they wanted me to opt in for the S.431 election. The scheduled vesting dates are December 2022/2023/2024. Now I've resigned, so I'll leave the company in November 2022. My employer told me that they will forfeit all my RSU, so by the time I leave no vesting dates will have been reached. The question is: will I have to pay taxes on the nominal value of the RSU because of the S.431 election even though I haven't received any income from them (and never will) ? If the answer is yes, will the tax due refer to the tax year 2021/22 (date of the "grant") or to 2022/23 (date of the forfeiture)? The S.431 form uses the term "acquisition", but as you know for RSU there are 2 possible events: assignment/grant and vesting. The RSU are assigned to me only in name. Until they vest I won't be able to sell them. In my case they will never vest because the employer will take them all back. In this case does acquisition mean assignment or vesting? Thanks and best regards.
Posted Thu, 25 Aug 2022 09:38:36 GMT by HMRC Admin 2

You can find guidance here:

ERSM20192 - Employment-related securities and options: what are securities: Long Term Incentive Plan (LTIP)

ERSM20194 - Employment-related securities and options: what are securities: RSUs and dividend equivalents: examples

This states Income Tax is due at vesting date so if no shares vest there would be no Income Tax charge.

Thank you.

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