Equity Tax NI Claim Off - Query

[DavidT88]

Hi,

I received some shares from my previous company, which were set to vest at a rate of 25% each year. I was never taxed on them at the time and left them untouched in the associated US account- i.e., I didn’t sell or transfer them to my UK bank account.

When I left the company, my final payslip included a deduction labeled "Equity Tax NI Claim Off," which reduced my take-home pay to £0 for that period.

I have two questions:
1. Is this type of tax deduction standard practice? I had assumed taxation would only occur once the shares were sold and the proceeds transferred. For context, I forfeited all unvested shares upon leaving, which I understand is typical.
2. If this deduction is standard, what tax rate is usually applied?

Thanks in advance for your help!

[someone]

It's complicated because there are schemes that are tax efficient but given that they appear to be US shares held in a US account they're probably not one of these schemes (which I know nothing at all about)

I think, therefore, you will pay income tax on the shares - and I'd expect you to have to pay it at the time they vest. Did your leaving date coincide with a vesting date by any chance?

See here for more details about the different schemes
https://www.gov.uk/tax-employee-share-schemes