Selling RSUs and Keeping them with Broker

[Porschegal]

Hi All, first time poster as this is only forum I can see previous discussions on RSUs. I have had my first tranche of shares vest. With CGT allowances reducing from next tax year I have decided to sell as I go along not that I think I will ever reach this. I have seen that it has been advised to use (Transfer)Wise and I have duly set up an account.

So my question is this, if I sell my shares can I leave them in my Wise account, get a Wise debit card and spend in the US when I am on holiday? Or should I just transfer from Wise to my UK bank account.

[The Leaper]

Purely from a UK tax point of view, there's no difference between keeping the proceeds of sale outside the UK or bringing the proceeds in to the UK. The point is that, unless you are a non dom, the proceeds will be taxed on what is called an "arising basis" ie that you have the value anyway wherever it is so it is subject to UK tax, not on a "remittance basis" which is when the funds are transferred to the UK and only the amount remitted is subject to UK tax.

If you retain the shares and have dividends arise in and are paid from the overseas country outside of the UK ,eg in the USA, if there's a double taxation agreement in place between UK and the overseas country, it is very likely that there will be withholding tax deducted in the overseas country. This WT can be offset against the UK income tax liability on the arising basis.

R.

[Porschegal]

Thank you Leaper. They taxed me already in my August pay when the shares vested. From my reading as long as the sell price is pretty much close to the vest price there should be not addtional tax to pay. I do have an accountant he hasnt been much help. Unfortunately I don't work for one of the new(er) tech start ups so the stock price will never rocket.

I was more thinking about it from an exchange rate perspective which is not so good now. Kids love going to Disney and it would cover our spending money should we go on another holiday.

[supersport]

Yes you can leave them in Wise and spend on their card - I have done this many times.

[Porschegal]

Thank you Super Sport.