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Equity compensation / employee shares

RSU and stock options tax calculator

This tool is for the common UK employee-share cases that cause the most confusion first: RSUs or share awards that vest into taxable income, and non-tax-advantaged options that create employment income on exercise before any later CGT on sale.

Scope: this models RSUs, vested share awards, and non-tax-advantaged employee stock options using rest-of-UK 2026/27 tax rates. It does not attempt EMI, CSOP, SAYE, SIP, internationally mobile employee issues, withholding differences across brokers, or foreign-tax-credit work.

Your inputs

Estimated after-tax proceeds on shares sold
£0 Waiting for an employee-shares tax read.
Employment income created£0
Estimated income tax£0
Estimated employee NIC£0
Base cost per share after vest or exercise£0
Gain or loss on shares sold£0
Estimated CGT on sale£0

What this means

The first tax event is usually employment income at vest or exercise. Only the movement after that point normally becomes CGT territory.

Professional read

Key assumption

The tool treats the market value at vest or exercise as the amount already brought into employment income, which then becomes the base cost for later CGT work.

Common mistake

Taxing the full sale proceeds as CGT and forgetting the PAYE-style income tax event that often happened earlier at vest or exercise.

Best next action

Check whether your award is actually a tax-advantaged scheme before relying on this, and reconcile the broker statement with the payroll withholding your employer has already applied.

When it breaks down

EMI, CSOP, SAYE, SIP, foreign tax, mobile employee issues, or employer withholding quirks need a case-specific review.

Methodology and source basis

This tool follows the usual UK sequence for non-tax-advantaged employee shares: employment income first, then CGT only on later movement from the vest or exercise value to the eventual sale value. It uses the 2026/27 rest-of-UK income tax bands, employee NIC rates, the £3,000 annual exempt amount, and 18% / 24% CGT rates for shares.

ReferenceWhy it matters
GOV.UK employee share schemesConfirms the core difference between tax-advantaged and non-tax-advantaged employee share routes.
GOV.UK tax when you sell sharesSets the CGT treatment on disposal once you have already established your base cost.
HMRC 2026/27 rates and thresholdsSource for the income tax and employee NIC assumptions used for the PAYE-style estimate.
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