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Posted Tue, 14 Jun 2022 15:05:58 GMT by Craig Wright
Hello, I work for a US based tech organisation that award RSUs that vest on a monthly basis. Each month I can see the amount minus withholding on my payslip, but there is no corresponding reference to the withholding as it is paid in the US. Couple of questions if I may: 1.Should I be combining the amounts withheld for the tax year in the US and entering it into the 'Foreign Tax for which credit relief not claimed' box on the 'Other Tax Reliefs' page? 2. Should I be entering the gross amount from RSUs in the tax year and also adding them in the 'Foreign Earnings Not Taxable in the UK field on the same form? On P60 my income is inflated from the RSUs, but the tax amounts to not reflect what was paid in the USA. Guidance gratefully received as don't want to get this one wrong.
Posted Tue, 14 Jun 2022 15:24:02 GMT by Craig Wright
Or do I add in the gross amount of the RSUs converted back into GBP and add it to Foreign Earnings Not Taxable in the UK field as the tax was already withheld in the US on the stock?
Posted Wed, 15 Jun 2022 10:11:32 GMT by HMRC Admin 17

The employment page should hold the total pay and tax deducted as shown on the P60.

As the tax paid on the RSU is not shown on the P60, you can show this as a Foreign Tax Credit on
the foreign section of the tax return. 

Thank you.
Posted Sun, 04 Sep 2022 17:08:45 GMT by Craig Wright
Hello, thanks. I looked at the calculation assistance sheet and it’s way too complex. It needs a very simple dummies guide using basic language. Can you confirm, do I simply 1. add up all the Tax paid to the USA 2. Work out the tax that would have been paid in the UK based on my tax bracket Then enter the lower of those two figures in the FTCR field?
Posted Thu, 08 Sep 2022 10:35:43 GMT by HMRC Admin 19

The double taxation agreement between the UK and USA, limits tax relief on dividends to 15 percent. 

You would need to calculate your full tax liability, including foreign income, dividends to determine the UK tax due on your foreign dividends. You can then claim Foreign Tax Credit Relief of a maximum of 15 percent of the gross dividends or if lower, the foreign tax paid.

Thank you.
Posted Tue, 22 Nov 2022 14:30:28 GMT by Craig Wright
Hello, The query isn't relating to dividends. I will use hypothetical numbers, but the scenario is that each month as part of my employment a number of RSUs would vest in the USA and tax would be paid in the USA. The balance of the shares would be reflected in the credits section of my salary in the UK, but the tax paid in the USA isn't. For example: 1. Gross Shares Vesting Every Month = 120 2. Shares sold to cover US taxes = 60 3. Assuming $100 a share, $6,000 would be converted to GBP (5,000) and appear on the credit part of the payslip 4. The US taxes paid are not reflected on my payslip So over a year I would see approx. £120,000 in stock vesting, £60,000 would be paid in tax in the US, £60,000 would appear on my pay slip in the UK. How do I establish the FTCR number for the tax return? The assumption is that I would: 1. Review Tax Due for the Total amount for the year 2. Calculate Tax due taking £60,000 off as per illustration above 3. Deduct point 2 above from point 1 and use that figure as the FTCR? Is this correct?
Posted Thu, 24 Nov 2022 12:34:55 GMT by HMRC Admin 32

That is correct. You then claim the FTCR on the foreign section of the return.

Thank you.

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