So my RSU’s (restrcited stock units) have been vesting for a while, and I have considerable $$ sitting in the US. What I’ve notice is that as the RSU’s vest and turn into shares, the IRS withholds 15% despite the fact I’m declared on WE8.

What are the tax implications – either side of the pond – of selling those shares? They are currently held by Compushare US, not even sure how the cash’d get to me TBH.

Thanks

The US witholds the 15% Capital Gains, even if you have filed your W8-BEN. You can offset your UK Capital Gains with the 15% already claimed from the US, since UK/US have tax treaty.

IANAA

Ok thanks.

Although, what happens of the amount that is under the capital gains threshold, will I receive that back?

And, do I deal with all this in the UK? So I just receive a cheque minus 15% and process the amount through Self assessment and HRMC deal with it?

I think when you submit with HMRC you declare it as foreign income and it’ll ask you if any tax was deducted at source. It’ll then include that tax in the calculation for the year.

I do it in reverse with Canada Revenue Agency and UK shares. It seems to work fine for me.