Capital Gains Tax on RSUs

Cotsy

I'm scratching my head on this one as I try to calculate my capital gains tax due for the year.

I'm clear on how to calculate CGT on stock options and on ESPPs but looking for a bit of info on RSUs.

First of all I'm aware that for RSUs income tax is applied to the value of the shares on the date on which they vest. This has already been handled by my employer so no issue here.
Example 200 shares vested on Feb 1 2016
I'm granted approx 94 shares as my employer automatically processes the other 106 to cover income tax due to Revenue.

This leaves me with 94 Shares to sell when I want.
I sell them and make a gain.

So then of course Capital Gains Tax is due on the amount of the gain (difference between my vesting price and my sale price).
Normally when paying CGT on share options you subtract the cost of acquisition and my understanding is this also includes the amount of income tax paid (RTSO) as part of the cost of acquisition.
So my question is can I include the value of the 106 shares that was paid to revenue as part of my cost of acquisition when calculating the CGT on these shares?

scheister

what i would is that the 106 were bought and sold at the same price so no CGT applies

So the only CGT due is on 96 shares using their MV at date of vesting against their sell price

Cotsy

Thanks Scheister,

Makes sense with the CGT due on the 94. I'm wondering when calculating the amount due on the 94 do I have the right to include the income tax paid on the 106 as part of the cost of acquisition. Because in theory the 200 shares were granted to me but the 104 were sold immediately in order to cover income tax (RTSO). It was me paying the tax just my company processed it for me.

So lets say the 200 shares vested at 10.00. Total worth 2,000.
106 shares are immediately sold and that money is paid to the revenue. 1,060
I'm left with 94 shares that value 940.
I wait X months and sell those 94 @ 40.00 making a total return of 3,760.
A gain of 2,700.

In the Revenue's guide it says :
The acquisition cost of the shares for CGT purposes is calculated as follows:
Where the shares are issued on the exercise of the option:
Regardless of when the options are exercised the cost of acquisition is the sum of the following:
The cost (if any) of the option,
The price paid for shares on exercise of the option, and
The amount charged to income tax on the exercise of the option.

So with that in mind my feeling is that I should be able to subtract the 1,060 from the 2,700 and pay CGT on 1,640...