Simonyg

I am a UK Citizen but have been resident in California for the past 3 years. I worked for the UK arm of a US business for 13 years prior to relocation. I am here on an L visa and plan to return to the UK in about 18 months.

Between 2006 and 2013 I was awarded various tranches of RSU's in the US based parent company, which vested over a 3 year period and were fully vested before I relocated to the US. Income tax and NIC was paid to the HMRC against the Fair Market Value of the RSU's at each vesting.

We have just sold the business and I have been paid the proceeds for the sale related to my RSU's. My question is, what taxes am I liable for and where?

UK:

My understanding is that as I am not a resident, there is no capital gains liability to be paid to the UK, unless I return within 5 years. Is this correct?

US:

As the US tax system is worldwide, I believe I need to declare the full amount received and use the FMV as the basis for the units. Then pay Capital Gains tax on the difference. Is this correct?

I have received some advice that there is no Capital Gains tax to be paid in the US on the UK units which were vested and had tax and NIC paid on them in the UK. I don't believe this is true but wanted to check with the helpful members of this forum.

I will be getting more professional advice in January but the more educated I am the easier that process will be.

Thanks.

Owen778

Your interpretation would be the same as mine, but as you say I'd also want to investigate further to be sure.