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Posted Sun, 04 Dec 2022 20:39:11 GMT by Walter Picco
Hi, I have vested some RSUs in the 21-22 tax year from my US employer. Through the scheme, they process applicable taxes (income tax, employee NIC and employer NIC) via payroll at the point of vest. I chose to retain all shares, so I paid the amount of applicable taxes they calculated out of my savings (in other words: no RSUs have been sold to cover my taxation liability, I paid to retain 100% of the shares). I have not sold any share (neither at vest, nor afterwards). When I complete the Self Assessment, do I have to complete the "Foreign income details" section? Do I have to declare the amount of taxes I paid (out of my savings) so it lowers my taxable income? Thank you for managing this channel, this is really useful!
Posted Wed, 07 Dec 2022 16:05:29 GMT by HMRC Admin 2
Hi,

You will complete the foreign section to claim any foreign tax credit relief in respect of the American taxes paid.

You cannot reduce the amount in respect of taxes paid out of your savings

Thank you.
Posted Fri, 09 Dec 2022 13:38:07 GMT by Walter Picco
Thanks for your reply. My company calculate taxes of my RSUs following the UK rules (including employer and employee NIC). That should mean that I do not have any tax credit relief. If that is the case, do I have to complete the foreign section anyway? Thanks!
Posted Mon, 12 Dec 2022 16:32:30 GMT by HMRC Admin 32
Hi,

As the payment is from your employer the income should be shown in the employment section if it is included in your P60.

You would then claim 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'.

Thank you.

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