Restricted stock units uk tax treatment

Restricted stock units uk tax treatment

Posted: wildan Date: 03.06.2017

Is your company one which is owned overseas? You should be aware that the tax and National Insurance rules are changing.

How Restricted Stock And RSUs Are Taxed

Put simply, RSUs represent a promise by the company to transfer shares to an employee at a specific time in the future based upon the employee meeting certain performance conditions. Historically, HMRC has generally accepted that either method of collecting the tax charge is valid, as long as it is followed consistently.

restricted stock units uk tax treatment

The Finance Bill will include measures to clarify the treatment by taxing the acquisition of shares under an RSU under the rules relating to securities options with effect from 6th April For internationally mobile employees, this will cause minimal change to the income tax liability.

However, there may be a significant impact on the social security implications. Care should also be taken where a plan allows for cash to be delivered in place of shares, as this may cause the RSU to fall outside of the scope of the securities options legislation.

restricted stock units uk tax treatment

From 6th April where an internationally mobile employee holds an RSU delivering shares or securities at vesting:. If you think you may be affected by the above or have any concerns about the issues described please get in touch.

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restricted stock units uk tax treatment

Treatment of Restricted Stock Units. Are you impacted by the tax and National Insurance changes?

Finance Bill Treatment of Restricted Stock Units. Are you impacted by the tax and National Insurance changes? - PwC in the South East

What does this mean in practice? From 6th April where an internationally mobile employee holds an RSU delivering shares or securities at vesting: How can we help?

We can provide advice and guidance with the following areas. Determining whether your share plan falls within the terms of the new legislation and how your plan will be affected. The impact of the changes on the calculation and payment of tax and social security contributions, as well as reporting requirements.

UK tax authorities comment on Restricted Stock Unit plans - Lexology

Communicating the changes to affected employees. Where internationally mobile employees are affected by the changes, assisting with the processes and procedures in place to track employees. Contact us Kate Harris Reward and Employment Leader Tel: Privacy Statement Cookies info Legal Disclaimer About Site Provider Provision of Services Diversity Web Accessibility Email Webmaster Edit user details.

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