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Posted Mon, 09 May 2022 08:25:28 GMT by juanseba
Hi, Similar to the above… I have a question based on the example below. If my salary is 85k a year and I sold 40k of rsu (the same day they vested, so no capital gains - paid already 47% tax on them (sell to cover)), would I lose the tax allowance because my total income is 125k? Would like to confirm if rsu vested and sold must be part of the total income subject to tax? Because if thet can be excluded, then I will not lose my tax allowance… Thanks, 
Posted Fri, 13 May 2022 13:40:45 GMT by HMRC Admin 20
Hi juanseba,

If this is subject to income tax, which it normally is then this would form part of your taxable income.
If this pushes you over the £125K mark then you will not be entitled to your personal allowance.
Guidance on adjusted net income for personal allowance can be found here
Personal Allowances: adjusted net income

Thank you.
Posted Tue, 07 Jun 2022 14:18:46 GMT by Abbas
Hi There I would like your help to clarify below scenario: I am an employee with a salary below 70K but I do have some RSUs granted by my employer. some RSUs were vested in in last financial year, and required amount of shares are already sold by my employer to cover any taxes due and Only remaining share are deposited to your broker account, however I have decided not to sell any shares on that FY once they are available to me. however, since the value of the sold shares added to my base income and pushing it above 100K , it is impacting my Personal allowances tax relief. the problem is I have not really sold any share and I really do not have any money earned as result of this, but suddenly finding myself with adjusted tax code which is impacting my net pay. my expectation was that any tax liability should impact whenever I sell those RSUs and there is real income/money available to me, as long as they are unsold, they are just an asset, but once they are sold , they may both impact my net income in a FY they are sold as well as potential CGT . Can you please advice if I can call HMRC to re-adjust my tax code back to reclaim my Personal Allowances? Regards
Posted Wed, 08 Jun 2022 12:56:17 GMT by HMRC Admin 10
This RSU is included when calculating your Net Statutory Income we cannot remove it when estimating your estimated income figure for Personal Allowance.
Posted Thu, 16 Jun 2022 13:13:56 GMT by Abbas
Hi can you please help with below scenario. let say I was awarded 10 RSUs last year and 5 shares were sold at $100 each by my employer to cover all tax liability etc and 5 shares gets credited to my brokerage account, however I do not sell those share immediately but a a year later. when I sell those RSUs a year later, the prices has dropped to $50 a share. this simply means in reality I have earn ed a net cash value lower than expected value of $500 ( 5 x $100 ) which is $250 (5 x $50). so at the time of vesting, when I was taxed it was based on value of $100 per share ( $1000 total value) hence 5 shares was sold to cover $500 tax liability but when I sell the shares I only earned $250 which is less than $500. Does HMRC recognises this loss and how can I claim the loss ore relief?
Posted Fri, 17 Jun 2022 08:40:08 GMT by HMRC Admin 19

You can see guidance here:

Tax when you sell shares

Thank you.
Posted Fri, 17 Jun 2022 13:20:46 GMT by Amilie Tara Zara-Davis
Question: My employee RSUs vest on 1 April - but my employer is operating a blackout due to their annual report production ... the shares will be distributed to me in July is it correct for them to apply Tax withholding as at the date of distribution in July or the vest date in April? since I will not have been distributed the shares I expect tax will be as at the distribution date but I want to check.
Posted Tue, 21 Jun 2022 07:32:00 GMT by HMRC Admin 19

The date of charge is when a chargeable event occurs. In this case it is when the restrictions are lifted and the shares vest. So the date should be 1 April. You can see more information here:

ERSM30390 - Restricted securities: the charge

Thank you.

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