Self Assessment - double taxed on vested RSU 25 October 2022 at 7:15PM in Cutting tax 3 replies 73 views

harbor

hi there!

I received some shares through a company RSU scheme (UK citizen working for US company). When the shares vested, half were sold to pay for the tax (45% + 2%NI) while the remaining shares were deposited as income. This income shows up on my P60 but the tax paid doesn’t. Is this double taxation? Because I have already paid the tax on the shares that I received, and then the remaining shares which show as income on P60 also get taxed.

I have been reading that I can claim tax relief on my self assessment, because of this tax already paid.

But, I can't find the way to do this correctly. There is a section in Foreign income, but it asks for tax paid and taxable income. What would the taxable income here be filled as? The value of ALL the shares? Please help.

Many thanks in advance

sausage_time

That does not sound right.  I have similar arrangement, but my pay slip shows a credit for RSU gain and the same figure deducted post tax.  So they add the "gain", calculate the tax, then subtract.  I also have a negative deduction (!) representing the value of the RSUs withheld which is the tax effectively paid.

harbor

What about your P60? My P60 shows my normal income+income from (tax deducted) shares. The tax on my P60 is calculated from that value. so isn't that twice - first shares were sold based on tax value, and through P60 I can see that the shares income was taxed again...

sausage_time

P60 shows real income plus value of all RSUs vesting (ie including those withheld).  Tax "deducted" is calculated based on that.  On payslips I have a post tax calculation credit for the value of the shares withheld that month.

You should be able to run a spreadsheet to confirm that your employer has done the right thing.