Price for a distribution of restricted share units (RSUs)

Could you help me, please? If I understand correctly, for valuation for a restricted share unit (RSUs) distribution a 'quarter-up' price can be used in some cases. I don't necessarily have the necessary information to calculate that 'quarter-up' price for a distribution of shares that were traded on a foreign (non-UK) stock exchange. Could you advise me, please, is it acceptable if I instead use the 'close' price on the day of the distribution for what counts as income (including for income tax) and for capital gains tax?

Hi StockOptions821485a,
Restricted Stock Units, are a way of employers providing incentives to employees over the long term.
As the RSU is from your employer, the income when it vests, should be shown in the employment section if it is included in your P60.
You would then claim a 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'.
If you do not sell the shares immediately on vesting, then you could have a capital gains tax liability, where they are sold for more than the acquisition cost.
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.
Thank you. 

Thank you. My question was about valuation. Could you help me with my question about valuation from my first message in this thread, please?

Hi StockOptions821485a,
The RSU's you have, are between you and you employer.
You would need to discuss this with your employer, for a valuation.
HMRC cannot advise on this.
Thank you. 

Hello. Thank you. My employer has been in administration. I may need to work on valuation myself. Could you advise me, please, may general rules (?) of valuation for shares be relevant to my question? In general, can the 'close' price for a day be used instead of the 'quarter-up' price for the day for valuation of shares that were traded on a foreign (non-UK) stock exchange? If so, can I use it for the RSUs distribution as per my first message in this thread?

Hi,

Whilst in administration prior to the dissolution or striking off of a company does not preclude the use of alternative valuation procedures from the standard. You can see guidance here:

SVM107020 - Capital Gains Procedures: Valuation requests

The CG34 post transaction service (https://assets.publishing.service.gov.uk/media/626bc36ce90e0746cb4aff91/CG34.pdf) offers is an optional procedure applicable to disposals and deemed disposals prior to the submission of a tax return detailing the disposal.

CG34 — Post-transaction valuation checks for capital gains

Any share valuations related request would require full accounts for the 3 years up to the valuation date.

Valuation methods utilising the ‘quarter up’ price of shares, prescribed in statutory form, latterly at TCGA92/S272(3) for Capital Gains Tax (CGT) purposes. From 6 April 2015, the method of valuation for CGT was changed by The Market Value of Shares, Securities and Strips Regulations 2015 (SI 2015/616). The value used for most CGT purposes is the figure one-half of the way up from the lowest to the highest closing prices of the day. 

Thank you.

Hello. Thanks a lot. *** > Whilst in administration prior to the dissolution or striking off of a company does not preclude the use of alternative valuation procedures from the standard. I am sorry, it is not necessarily clear what that means. Could you advise me, please, what does that mean? *** In 'The Market Value of Shares, Securities and Strips Regulations 2015' there is section 'Securities or strips listed on recognised stock exchange outside the United Kingdom'. Could you advise me, please, if shares were traded on a foreign (non-UK) stock exchange, and I have only one 'close' price for that day, does it mean that I can use that one price (just as it was) for valuation purposes for CGT? Can the same price be used for Income Tax and National Insurance?

Hi StockOptions821485a,
Guidance on valuation of shares traded on foreign stock exchanges is Capital Gains Manual CG59514 - Valuation: quoted shares: further points.
Thank you.