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Posted Wed, 16 Oct 2024 11:33:19 GMT by Joce Chow
Hi I receive RSUs from my company and when the shares are vested, part of them are sold for tax withheld. On my payslips, the Earnings part shows the total RSU value before tax withheld and also the tax withheld deducted when vesting. Does this mean that the tax withheld has been refunded and the RSUs has been fully taxed via PAYE? If this is the case, I assume that I don't need to report the RSU incomes and claims foreign tax reliefs on Self Assessment because all have been processed by payroll? Thanks.
Posted Thu, 24 Oct 2024 14:51:18 GMT by HMRC Admin 20 Response
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'.  
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.
Posted Fri, 25 Oct 2024 04:19:26 GMT by Joce Chow
Hi, thanks for your reply. The RSU vesting value is included in my P60 so I understand that I don't need to report it separately. However, I am confused about the tax credit claims as it seems that the foreign tax which was deducted via vesting is refunded by the employer on the payslip and at the same time the UK tax is deducted for the RSU value. If the foreign tax has already been refunded, do I still need to claim credit for the tax?
Posted Thu, 31 Oct 2024 15:21:48 GMT by HMRC Admin 20 Response
Hi,
No as this would then duplicate the repayment in error.
Thank you.

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