CGT threshold and RSU's??
Discussion
Question about Restricted Stock Units for any accountants that can spare a minute.
I have a number of shares about to vest (and had some vest last year also).
The company holds back a percentage of the shares to cover tax liabilities however, does this come under CGT allowances? i.e. if the value of the RSU's is less than the CGT tax threshold can I put this in my tax return to reclaim the share value withheld for tax purposes? It's already counted on my salary slips as tax withheld.
I assume the profit is the full value at cashing in (or vesting?) as I was given them for zero cost.
Can I go back and reclaim last years also? If so, would both go on the same tax return or do I need to resubmit a correction on my previous tax return?
Thanks in advance
I have a number of shares about to vest (and had some vest last year also).
The company holds back a percentage of the shares to cover tax liabilities however, does this come under CGT allowances? i.e. if the value of the RSU's is less than the CGT tax threshold can I put this in my tax return to reclaim the share value withheld for tax purposes? It's already counted on my salary slips as tax withheld.
I assume the profit is the full value at cashing in (or vesting?) as I was given them for zero cost.
Can I go back and reclaim last years also? If so, would both go on the same tax return or do I need to resubmit a correction on my previous tax return?
Thanks in advance
OK first point. Share schemes/RSUs/restricted stock etc. is a very technical tax area. The Company should already have obtained tax advice as to the treatment for employees.
Generally speaking however RSUs are effectively treated like a bonus payment at vest. The amount you receive is cash and it is liable to income tax and social security. The vest is not a CGT event.
Generally speaking however RSUs are effectively treated like a bonus payment at vest. The amount you receive is cash and it is liable to income tax and social security. The vest is not a CGT event.
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