UK - RSU Capital Loss (/Gain) on vest?
UK - RSU Capital Loss (/Gain) on vest?
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foo · External communityPost link
External question — Personal Finance Stack Exchange
Author: foo
Original post: https://money.stackexchange.com/questions/144507
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
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Say I had 100 RSUs granted, and when vesting shares trade at $10. My employer will aim to withhold 54.59% to cover income tax/employee NIC/employer NIC.
The following day, when my employer actually sells the shares, the shares trade at $9. Given that (100 * $10 * .5459)/$9 = 60.6, my employer sells 61 shares to cover taxes. The extra .4 share proceeds, .4 * $9 = $3.6 will be refunded to me via my regular payslip.
Given the price difference between the $10 used for tax purposes, and the $9 price during the disposal, can I claim a ($10 - $9) * 61 = $61 capital gain loss? I looked up the HMRC's website but couldn't find a definitive answer.
For the purpose of this question, let's ignore the need to convert USD to GBP for tax purposes which follows it own rules and are irrelevant here.
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user187 · External communityPost link
External answer — Personal Finance Stack Exchange
Author: user187
Original post: https://money.stackexchange.com/a/144508
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
At the time after the first two paragraphs, you own 39 shares with a cost basis of $10 per share. Shares sold for less that that, are a loss for tax purposes.
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Quoted from Forex.com.bd-Editorial External question — Personal Finance Stack Exchange Author: foo Source score (net votes, not local likes): 1 Original post: https://money.stackexchange.com/questions/144507 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. Say I had 100 RSUs granted, and when vesting shares trade at $10. My employer will aim to withhold 54.59% to cover income tax/employee NIC/employer NIC. The following day, when my employer actually sells the shares, the shares trade at $9. Given that (100 * $10 * .5459)/$9 = 60.6, my employer sells 61 shares to cover taxes. The extra .4 share proceeds, .4 * $9 = $3.6 will be refunded to me via my regular payslip. Given the price difference between the $10 used for tax purposes, and the $9 price during the disposal, can I claim a ($10 - $9) * 61 = $61 capital gain loss? I looked up the HMRC's website but couldn't find a definitive answer. For the purpose of this question, let's ignore the need to convert USD to GBP for tax purposes which follows it own rules and are irrelevant here.
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