RSU tax refund after stock tanks post vesting?

Palantir
taaaaarzan

Go to company page Palantir

taaaaarzan
Mar 5 8 Comments

Lets say you have base salary £100000 and when your RSU vests: the price is at £50 and you get 1000 shares in one year so you would have £50000 increase in income.

For that year, You pay taxes on £150000 income because that's effectively your total income.

But after a 1-2 years, the NET RSUs you hold dropped to £25 , can you reclaim some income/withholding taxes you effectively overpaid? I know you can claim capital gains losses if you sell your net RSUs but that doesn't help if you don't want to sell them or unless you've enough capital gains in other stocks to make the capital losses useful.

#personalfinance #investments

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TOP 8 Comments
  • Okta
    peepoo_

    Go to company page Okta

    peepoo_
    no refunds cos you always have an option to sell on vest date
    Mar 5 0
  • ARM
    noodlearm

    Go to company page ARM

    noodlearm
    Try ask this question on Reddit UKPersonalFinance. Majority of people here are in US so probably don’t know much about tax rules in Uk.
    Mar 5 0
  • Investment Bank
    Glinda

    Investment Bank

    PRE
    HP
    Glinda
    No, it does not work that way ... wish it did. You can take a capital loss when you sell your shares. My best advice is if the company is solid do not sell the shares; it's not a loss until you sell
    Mar 5 0
  • Stripe
    gherkin01

    Go to company page Stripe

    gherkin01
    Doubtful. You have to liquidate and realize the losses first. RSUs are worth nothing until they vest and dont have tax implications for you unless you sell
    Mar 5 0
  • MAN Energy Solutions
    SBMD14

    MAN Energy Solutions

    SBMD14
    The price at which they were vested is counted as your regular income and taxed at personal income tax brackets, if after two years stock price goes down, vesting price minus current price is capital loss and you can offset that loss against capital gains that you may have in current or future years. What ever income tax you paid on vested price you can’t recover filing loss. Also from net carrying capital losses you carry forward, every year you can deduct $3k from taxable income in US.
    Mar 5 0