UK employee restricted stock units in US parent

Client is a UK employee of a UK company and has restricted stock units in US parent company

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My client is a UK employee of a UK company.  He has received restricted stock units in US parent company as a result of his employment.  Please could someone point me in the right direction/confirm my understanding is correct.

When the restricted stock units vest and are exercised any income, and resultant tax due, will be recorded through the payroll process and, therefore, included on P60 or P11d.  If the employee then sells the stock the resulting gain or loss will be subject to tax in the UK as a capital gain.

Thank you in advance for your help.

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By ms998
19th Jul 2017 12:31

When the vesting lifts that is the initial tax point. Exercising option may be second tax point. Both will be subject to employment tax. P11D if not a readily convertible asset. Payroll if it is. If it does go through payroll ensure the tax is paid by employee within 90 days otherwise s222 charge may apply.

Once shares in employees hands any subsequent gain is subject to capital gains tax. There are special rules if vest/sale on same day to ensure the amount chargeable to tax is the amount in employee's hands.

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