Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Mon, 28 Aug 2023 15:05:39 GMT by matmsh Man
I am a UK tax payer. In February 2023, some of my RSU shares, in US, was vested. On the vesting day, some released shares were sold to pay for tax in UK by my employer. I am holding the rest of the released shares. In my February 2023 payslip, the value of the vested shares (before tax) was added to my taxable pay, but strangely the tax on vested shares was not collected. (So the tax paid in the payslip did not include the tax on the vested shares.) But I have a share account statement saying tax was paid on the vested shares. In the online self assessment form for April 2022 to April 2023, how do I declare tax on the vested was already paid, so that I avoid being tax again on the vested shares ? Thanks in advance for your assistance ! Shing
Posted Mon, 04 Sep 2023 09:00:24 GMT by HMRC Admin 19

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 is 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.

You must be signed in to post in this forum.