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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 16904
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I worked for a number of years for an IT company and through

Customer Question

Hello, I worked for a number of years for an IT company and through a salary scheme (ESPP) I was buying shares. I also received few RSUs as well. Every time I have disposed of the shares the profit was below the CGT yearly allowance. Am I correct that any report to HMRC would need to happen only when shares are disposed above the CGT yearly allowance and shares which currently are sitting in my account for years (not sold yet) do not have to be? Thanks
JA: Have you talked to a tax professional about this?
Customer: no
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: nothing else
Submitted: 18 days ago.
Category: Tax
Expert:  Sam replied 18 days ago.
Hi

Thanks for your questions

When RSUs vest their proceeds are paid out through your salary and taxed income tax and National Insurance whether above or below the capital gain threshold as they are not subjected to capital gains as part of the approved scheme arrangement with HMRC

The shares you purchase I imagine as under the capital gain rules as not part of the RSU arrangement these would be liable yo capital gains and if these were under the capital gain threshold then nothing to declare 9if over then anything over the threshold would be liable to capital gains rates

Thanks

sam

Customer: replied 18 days ago.
Thanks Sam, so if I understand correctly RSU are taxed as per normal salary deduction? The shares I purchased are through a scheme called ESPP essentially I have invested a % of my salary every month which gets deducted to purchase shares, considering that these are in dollars if i ever go above the £ CGT threshold (as based in UK) do i need to do a conversion based on the actual date of shares sale to determine the profit? What If both RSU and ESPP shares are left in my account and do not sell them, will they be reported only if sold and above the CGT threshold correct?
Expert:  Sam replied 18 days ago.

Hi

Yes as the RSU and issues and vesting of shares (normally three years later ) are part of the approved employers share scheme

Yes with any other share purchases the conversion to sterling has to take place on the purchase date and sale date to establish the true gain You would need to speak with your employer about what to do if you dont sell the vested ones

Thanks

Sam

Customer: replied 18 days ago.
Hi, I am sorry that does not answer the question because the employer would tell me to check with a Tax professional which I believe it is you? If you do not know the answer please transfer the conversation to another professional, I am sure you have the way to do this internally. I need a clear and final response to my questions thanks
Customer: replied 18 days ago.
Also I left that employer
Customer: replied 18 days ago.
the RSU are all vested
Expert:  Sam replied 18 days ago.

Hi

Only your employer or the scheme administrator can tell you what sits within and out of the approved scheme - no tax expert can answer that for you
thanks

Sam

Customer: replied 17 days ago.
The employer referred to my tax expert. Can you please defer this thread to somebody else? Otherwise I will ask for a refund
Expert:  Sam replied 17 days ago.

Hi

No one else can help you only your share scheme provider as already advised as only they know what element of your purchases are within or out of the scheme - which I am sure you can appreciate

Thanks

Sam