RSU Income type

Hi Mac67,

As you paid tax on the vested amount through your PAYE tax, you would only need to show your pay and tax from your P60, on SA102.  

Should you sell and shares, you may be subject to Capital Gains Tax. You can see more information here:

Tax when you sell shares

Thank you.

Hi CB, 

You will show all the income as per the P60 you received. You can then claim Foreign Tax Credit Relief for the tax paid abroad.

Tax on foreign income

Thank you.

Hi, I had RSUs vesting in 2021-2022. The shares are in $ in the US, and I work for UK company, which s part of the US-Based Group. I am paid via the UK Payroll. On vesting, my company sells part of the shares to cover both Taxes and NIC. Payroll processes the transactions through payroll (as Benefit in Kind: paid in and out) in order to deduct correct taxes and NIC based on my YTD record. In other words I see the amount equivalent to the share values as a payment and a deduction in my payslip. Do I need to include the value of these shares at all in my tax return other than indicating the total pay and total tax taken off that appears on my P60? Thanks, Hector.

Hi,

No, as they are already included in your P60.

Thank you.

Hi, I am an English resident and tax payer. I have received RSUs from an English company which vested in 21/22 tax year. At the time of vesting a portion of these shares were withheld to cover tax, this is stated on the vesting certificate. These do not appear on my P60. I presume these need to be declared in SA but where? Specifically which section and question? How do I annotate in the declaration that tax has been withheld at time of vesting? Thank you!

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.

Hi There I have been issued RSU's over 4 years and for the last year and a half have not sold any that vested as the share price was dropping. I've paid tax through my PAYE on each set as they vested based on their value at the time. In the same way that holding on to them and not selling would make them subject to capital gains tax if they had increased in value, can I report a capital gains loss of the difference between value when they vested and sale price if I were to sell now? And if so, would that be used to offset any future capital gains, or could I receive a tax rebate for the taxes overpaid based on the eventual sale price? Many Thanks

This page mentions that free company share is deductible from the tax (limits up to £3600). Does it mean that we can claim back tax from the vested RSU units? www.gov.uk/tax-employee-share-schemes/share-incentive-plans-sips

Hi Hannah Welch,

Yes, if the sale price is lower that what the vested at.

Further guidance is available at:

HS287 Capital Gains Tax and employee share schemes (2022)

Thank you.

Hi borsaman,

Share incentive plans, where employers can give you up to £3600 of free shares in any tax year are not the same as Restricted Stock Units (RSU).  

RSU's are also known as Long Term Incentive Plan (LTIP) that aims to provide incentives to employees over the long term and when the award vests, the reward, linked to shares or securities could involve the award of securities, the grant of securities options or be a cash bonus scheme that tracks movements in securities.  

They do not qualify for the £3600.00 free shares incentive.

Thank you. 

Hi there, >> Are vested RSUs considered foreign income? - During the fiscal year ending in April 2022, I had RSUs vesting. The RSUs were originally granted to me by an American company while I was living in Luxembourg However, they vested while I was working in the UK. - In the fiscal year ending in April 2022, I have been living and working in the UK only. - The RSUs Release method was: Sell enough shares to cover taxes and fees, receive balance as shares. - I did not sell any share in that year. They only vested. I am trying to understand, do I have to file a tax return for that year through self-assessment because of foreign income? (No other point of the online checklist applies -i.e. I didn't earn more than £100k, nor I was self-employed ecc.) Many thanks

Hi Valgo,

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,