RSU - record sell to cover on self assessment for CGT
Discussion
Like many on here I work for a US company and am granted RSUs.
These are subject to income tax, NIC and employer NIC, for which enough are automatically sold on vesting to cover this tax.
The net shares are deposited in a brokerage account. Going forward any sales proceeds are then subject to CGT.
I can't make my mind up as to whether or not the sell to cover should recorded/reported for CGT purposes on my self assessment.
The other interesting thing is, that although the net shares are not released to my account until the sell to cover completes, which can take a day or so. Therefore they show up as being acquired on the notional vesting date, but the sell to cover happens a day or so later. This would mean that they aren't covered by the same day, or 30 day rule and would therefore have to be recorded as going into the 104 holding.
These are subject to income tax, NIC and employer NIC, for which enough are automatically sold on vesting to cover this tax.
The net shares are deposited in a brokerage account. Going forward any sales proceeds are then subject to CGT.
I can't make my mind up as to whether or not the sell to cover should recorded/reported for CGT purposes on my self assessment.
The other interesting thing is, that although the net shares are not released to my account until the sell to cover completes, which can take a day or so. Therefore they show up as being acquired on the notional vesting date, but the sell to cover happens a day or so later. This would mean that they aren't covered by the same day, or 30 day rule and would therefore have to be recorded as going into the 104 holding.
Yes the RSU income and sell to cover tax/NI etc should be added to your self assessment. It’s income and therefore tax applied by your company but should be noted on the self assessment. I receive RSU from my company. I get them added (and sell to cover added) to my P60 by my payroll company. Much easier for the self assessment but maybe too late for this tax return.
Edited by TonyG2003 on Friday 7th January 08:49
supersport said:
I can't make my mind up as to whether or not the sell to cover should recorded/reported for CGT purposes on my self assessment.
If there's only a day or so between the vest date and the sell to cover transaction then I wouldn't bother. I'm in a similar situation and I've never actually looked that closely at it. I just rely on PAYE to handle the income tax and NI and then handle any capital gains in a S104 (which is also a pain as my shares are in USD).coetzeeh said:
anonymous said:
[redacted]
+ 1 theaxe said:
If there's only a day or so between the vest date and the sell to cover transaction then I wouldn't bother. I'm in a similar situation and I've never actually looked that closely at it. I just rely on PAYE to handle the income tax and NI and then handle any capital gains in a S104 (which is also a pain as my shares are in USD).
In the same boat, and that is what I have been doing.I have found a couple of questions asked on the HMRC community pages and I am now leaning to keep on doing what I am doing, which is nice and simple.
Either way I don't own any CGT it's just that I may need to report that I don't owe anything
supersport said:
Either way I don't own any CGT it's just that I may need to report that I don't owe anything
As much as possible I sell my shares pretty soon after I get them and if I'm feeling bullish I re-buy them in a S&S ISA. As a result my capital gains are always under the limit but I have to do the maths to prove it...Gassing Station | Finance | Top of Page | What's New | My Stuff