How Are RSUs Taxed in UK: Employment Income vs Capital Gains?

Published: 06/09/2025 • By Chris McConnachie
RSUs in the UK are taxed in two stages: first as employment income when shares vest (subject to Income Tax and National Insurance at marginal rates), then as capital gains on any increase from vesting to sale. The employment income element is calculated using the share value at vesting date, with tax typically deducted through PAYE. Any subsequent gain or loss from vesting value to sale price falls under Capital Gains Tax rules, with the annual exempt amount (£3,000 for 2024/25) available to offset gains. This dual taxation structure means RSU recipients face different rates and allowances at each stage.

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Topics: rsu-taxationemployment-incomecapital-gainsequity-compensationuk-tax-planning

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