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RSU Experts - Unvested shares after redundancy still included as P60 earnings
chrisco2016
Posts: 1 Newbie
in Cutting tax
Hi,
Two questions really.
1. I was awarded an RSU stock grant last tax year. The nominal value of the shares was added to my salary as a "notional stock gain" - so shown on payslip but not payed. I was subsequently made redundant before the granted shares vested and the grant was cancelled but the nominal value was still included as earnings on my P60 for last year. Is that correct or should that have been removed when cancelled?
2. I had other grants for the preceding years which hadn't fully vested. Can I talk to the Tax man about a possible claim for those for previous tax years?
Thanks!
Two questions really.
1. I was awarded an RSU stock grant last tax year. The nominal value of the shares was added to my salary as a "notional stock gain" - so shown on payslip but not payed. I was subsequently made redundant before the granted shares vested and the grant was cancelled but the nominal value was still included as earnings on my P60 for last year. Is that correct or should that have been removed when cancelled?
2. I had other grants for the preceding years which hadn't fully vested. Can I talk to the Tax man about a possible claim for those for previous tax years?
Thanks!
0
Comments
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Not an expert, but this sounds very odd
The taxable value ( income tax ,NI) is established as at the date of vesting, as is the exchange rate if the RSUs are in a foreign currency.
My understanding is that until vesting,RSUs are deferred income and are not subject to tax until they vest and become disposable income to the holder
You should not be paying tax on the RSUs if you have received no financial benefit from them
Have you checked the scheme literature.?My own voids unvested RSUs only if you leave voluntarily ( other than for retirement)
2
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