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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
Hi
This RSU is included when calculating your Net Statutory Income we cannot remove it when estimating your estimated income figure for Personal Allowance.
Thankyou.
Regards.
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
Hi,

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
Hi,

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.
Posted Tue, 06 Sep 2022 22:10:10 GMT by Nedrag6
Hi, I work for a US company in the UK and have been granted RSUs over the past few years. When exercising these options the proceeds are shown as Earnings within gross income but my pay slips also reflect a corresponding Benefit in Kind, shown as 'Equity NC Tax Only', which is always greater that the proceeds from the sale of RSUs. Consequently my net earnings reduce every time I exercise options. Can you provide guidance as to how this can be resolved and how tax could be reclaimed for previous years? Thank you.
Posted Fri, 23 Sep 2022 08:18:34 GMT by HMRC Admin 19
Hi Nedrag6,

Your first port of call would be to establish with the employer or wages department the breakdown of the award received. As we understand it the RSU’s can be paid out as cash or as shares. Any sum paid out as cash is included in pay, and taxed accordingly.

However, there may still be a deemed benefit in kind for the shares awarded, due to the difference between the sum you are deemed to have been awarded them at and the market value at the time. You can see guidance and examples here: 

ERSM20193 - Employment-related securities and options: what are securities: RSUs and dividend equivalents 

ERSM20194 - Employment-related securities and options: what are securities: RSUs and dividend equivalents: examples

If there is any error in the P11D or Real Time Information information provided by the employer they will need to send revised forms and make any Earlier Year Updates necessary to your records. HMRC can then reconcile the year and refund any overpayment.

Failing this, you would need to provide all necessary information in connection with the RSU and sums awarded with any cash payment details for HMRC to review.

It maybe that the options have been granted under the law applying to the USA, in which case HMRC would need to seek advise from the Employee Shares and Securities Unit (ESSU). You can see more information here:

ERSM10040 - Introduction

Thank you.
 
Posted Wed, 09 Nov 2022 11:07:58 GMT by Eric Lamort de Gail
Hello I have been UK tax resident since end 2014 and I have worked as an employee of a UK entity subsidiary of a US multinational from 2014 to 2019. I have been granted RSU early 2018, my employment was terminated end Sept 2019 and my RSU vested early September 2021. I understand the proceeds (stocks vested minus withheld tax by selling some of the stocks , plus dividends related) are taxed as an ordinary income but I am not clear on the tax year of reference ("chargeable event?). This would have a significant impact since I had relatively high income in 2019 but nothing else than the RSU vesting in 2021-2022. Will the tax year of reference (for tax band calculation) be the employment termination date or the RSU vesting date ? Thank you
Posted Mon, 14 Nov 2022 17:47:14 GMT by HMRC Admin 10
Hi Eric Lamort de Gail
The RSU would be taxed in the tax year the RSU vested, not the year they were acquired.
Guidance on calculating the gain can be found at:
Securities Options: computation of option gain
Thankyou.
Regards.
Posted Thu, 24 Nov 2022 16:00:07 GMT by Steve P
Hello I have been granted some RSUs by our American parent company and these vested earlier this year, The total value of the RSUs has been included as part of my gross income but approximately 50% f the value was withheld by the US broker to cover tax etc. On my payslip I have an entry “Equity Offset’, again approximately 50% which I assume is related to the tax witholding in the US, bringing the total value of the RSUs down by 50%. I assume I have to claim some kind of relief for double taxation, but am not sure how this is handled in the Self Assessment as it is not clear what needs to be stated in the Foreign Income section. Any help gratefully accepted.
Posted Fri, 25 Nov 2022 15:46:16 GMT by HMRC Admin 10
Hi Steve P
You will show this on the foreign page as foreign tax credit relief with a note in the additional information section to confirm that it is against your UK income already declared but taxed in both countries.
Thankyou.
Regards.
 
Posted Sat, 26 Nov 2022 07:24:52 GMT by JB1979
Hi I have RSUs awarded in 2019 when I was resident in the US. I left that employment in 2020 but the RSUs were not forfeited. I became resident in the UK in the current tax year. Some of my RSUs vested before I became UK tax resident but some will only vest in 2023. Do I have to pay UK income tax on these even though they relate to employment which ceased long before I became UK tax resident? It seems that this is how the rules work for securities, even though if they were general earnings they would be treated as being for a year when I was non-UK resident. Many thanks
Posted Tue, 29 Nov 2022 13:10:18 GMT by HMRC Admin 19
Hi,

If you qualify for split year then you only report any foreign income for the UK part of the year. You can see guidance here:

Residence, Domicile and Remittance Basis Manual

If you do not qualify then you will need to report all your foreign income to the UK. Please see the following guidance:

Tax on foreign income

The guidance at RDRM12150 will help you work out if split year treatment applies. 

Thank you.

 

  

 

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