RTSO declaration on Form 11

So I declared the my RTSO gains (by ESPP) and the tax I paid already for RTSO for year 2021.

Enter total chargeable amount: I type here the total amount in my RTSO forms in 2021 under "Total Amount of Gain made on Share Option"
Enter the amount of Relevant Tax on a Share Option (RTSO) paid: And this is the already RTSO Taxes I paid in 2021.

After I fill this two field, Calculate section adds "Relevant Share Opt.Tax" and Revenue increases overpaid amount. So it's like I get some money back bcs I paid RTSO, which doesn't make sense at all. I am just trying to declare what I paid as tax but why does it give me money back?

And bonus question: Do I have to declare share options I gained which is locked at the moment? (released in next years). Help file says only add the amount for the exercised shares so I am confused.

Thank you!

barbaros said:

And bonus question: Do I have to declare share options I gained which is locked at the moment? (released in next years). Help file says only add the amount for the exercised shares so I am confused.

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By "released" do you mean "vesting"? A far as I know options that have not vested/been acquired do not trigger any tax event. Vesting/acquisition and disposal trigger tax events (CGT and/or income tax). However you should check with your employer about the rules applicable to your scheme. They won't be able to give you tax advice but they should be able to furnish you with the bare facts about the tax treatment.

You have to pay RTSO at the marginal tax rate 52% unless you got prior approval. So if you weren’t actually in max band of income tax and USC you could be due a refund. That’s one possible explanation, if your income apart from ESPP was below 70k-ish. [broken link removed]

ClubMan said:

By "released" do you mean "vesting"? A far as I know options that have not vested/been acquired do not trigger any tax event. Vesting/acquisition and disposal trigger tax events (CGT and/or income tax). However you should check with your employer about the rules applicable to your scheme. They won't be able to give you tax advice but they should be able to furnish you with the bare facts about the tax treatment.

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Yes I mean vesting sorry, they are not vested yet. They will vest in upcoming months in 2022, 2023 and etc.

Adelie said:

You have to pay RTSO at the marginal tax rate 52% unless you got prior approval. So if you weren’t actually in max band of income tax and USC you could be due a refund. That’s one possible explanation, if your income apart from ESPP was below 70k-ish. [broken link removed]

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I calculated 52% tax rate while paying RTSO, so it seems like what I did and paid is correct, and it's eForm so I assume there is no chance for messing up as long as I don't declare incorrectly on purpose. For this case, it's just stating how much RTSO tax paid I already which is hard to declare incorrectly. So it's not my mess up obviously.

barbaros said:

Yes I mean vesting sorry, they are not vested yet. They will vest in upcoming months in 2022, 2023 and etc.


I calculated 52% tax rate while paying RTSO, so it seems like what I did and paid is correct, and it's eForm so I assume there is no chance for messing up as long as I don't declare incorrectly on purpose. For this case, it's just stating how much RTSO tax paid I already which is hard to declare incorrectly. So it's not my mess up obviously.

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And was your non-ESPP income above 70k? 52% was the correct amount to pay but lower earners would be due a refund.

No, it's under 70k but above 36k, so I am in high tax bracket.

barbaros said:

No, it's under 70k but above 36k, so I am in high tax bracket.

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Ok so you’d be due a refund on overpaid USC - you paid 8% which is correct according to the RTSO rules but you are still due a refund for the portion that should be in the 4.5% bracket.