£15,000 RSU Vest Tax — £120,000 Salary
England & Wales · 2025-26 · Taxed as employment income at vest
RSU vest tax breakdown
| Base annual salary | £120,000 |
| RSU vest value | £15,000 |
| Total income in vest year | £135,000 |
| Income Tax on RSU vest | £7,907 |
| NI on RSU vest | £300 |
| Total tax on RSU | £8,207 |
| Net RSU value after tax | £6,793 |
| Effective RSU tax rate | 54.7% |
Frequently asked questions
How much tax do I pay when £15,000 of RSUs vest on a £120,000 salary?
When £15,000 of RSUs vest, HMRC treats the full value as employment income. On a £120,000 base salary, your total income for tax purposes is £135,000. The additional Income Tax on the RSU vest is £7,907 and the employee NI is £300 — total tax £8,207. Your net RSU value after tax is £6,793 (54.7% effective rate).
Does my employer deduct RSU tax via PAYE?
Yes — most UK employers (especially US-headquartered tech companies with UK employees) withhold Income Tax and NI on RSU vests through PAYE in the month of vesting. They typically sell some shares immediately to cover the tax liability ("sell to cover") and deliver the net shares to you. Check your payslip for the month of vesting to confirm the amounts withheld.
What is the CGT position after RSUs vest?
Once RSUs vest, you own the shares at their vested market value — this becomes your acquisition cost for CGT. If you immediately sell, the CGT gain is typically nil (sale price ≈ vested price). If you hold and the shares increase in value, any gain above the vested price is subject to CGT at 18% (basic rate) or 24% (higher/additional rate), less the £3,000 annual CGT exemption in 2025-26.
Should I sell RSUs immediately on £120,000 or hold them?
This is a financial planning decision. Selling immediately crystallises no CGT gain and removes concentration risk in a single stock. Holding creates potential upside but also downside risk and future CGT. If the shares push your income above £100,000 in a high-vesting year, consider whether pension contributions can reduce your adjusted net income below that threshold to avoid the 60% marginal rate zone.