Shares (RSU, ESPP), Trading Losses, and Tax

TornSoldier

Hi everyone,

I have a few doubts/thoughts running through my head. I will appreciate if you can help.

1. I am full-time employed at a company that deducts tax monthly. I have a pension contribution. I have not done a self-assessment as a tax is being paid at the source. I have been told I do not need it.

2. I have enrolled in an ESPP. The company deducts the required tax by selling #of shares before I get them. Now if I sell the ESPP-acquired shares, will I need to pay tax? My understanding is only if the total gain of the year is more than 12k. Is that correct? I believe the capital gain here is the price of the day - what i have bought them for?

3. I have also received RSUs for the first time. Do I sell them straightaway or keep them for the future? Once again, I will only pay tax if the capital gain is more than 12k? 

4. Which one do I sell RSU or ESPP? And, is it better to move the sum to an ISA?

5. Lastly, I tried my hands at trading this year and I have lost quite a bit. Is there any tax relief for trading losses? Can I use them for offsetting capital gains? If my capital gains are below 12k, I suppose my trading losses cannot be used against my standard income.

Appreciate your advise on these topics
TS

[Deleted User]

Know nothing about ESPPs or even what they are. If you use the accruals method trading losses can be set against income or gains of the same year or carried forward against profits of the same trade. There are other options. If you use the cash basis your only option is to carry forward the loss against that same trade. 

sausage_time

For ESPP and RSUs you normally would pay income tax/NIC on the "benefit" to you - discount (market less purchase price) for ESPP, or market price for RSUs.  Your employer should take care of that.   

All shares you acquire will go into a Section 104 pool - essentially a single weighted average of market prices.

When you sell, you sell shares from the pool - you can't choose ESPP or RSUs.  The capital gain/loss is calculated wrt the pool price (which, as noted, is the market price at acquisition - not purchase price).

This is how my company scheme works in any case.

Petetobin

In the case of RSUs, the normal policy is for your company to deduct the tax at the point of vesting and the nett proceeds are deposited into your account.  This also sets the purchase price from a CGT perspective.  You are right you only pay CGT when you sell the shares if your gain is greater than your annual allowance.  ESPPs work the same expect you are typically buying shares at a discounted price (15% in my case) and the only tax at the point of purchase is on the 15% element.  My company takes this amount on my payslip.