UK employees of US tech employers (and increasingly EU employers) typically vest in RSUs and exercise stock options every quarter, with proceeds settling in USD or EUR in their employer’s brokerage account — most often Schwab Stock Plan Services, E*TRADE, Fidelity Stock Plan Services, or Morgan Stanley Shareworks. For UK-resident employees with quarterly vests above $25,000, a specialist currency broker handles the conversion at FX margins of 0.3–0.8% versus 1.0–1.5% at the brokerage’s own auto-conversion. On a $100,000 annual RSU vest cadence, that’s around £700–£900 of avoidable cost per year. UK PAYE applies on the vest value, with US withholding handled at source on the brokerage side.
That’s the headline. The detail matters because most UK tech employees with US RSUs receive their vests automatically, accept the brokerage’s default FX margin, and never optimise. On a senior engineer’s $300,000–$500,000 annual equity package, that’s a meaningful five-figure leakage over a typical 4-year vesting cliff.
Who this guide is for
This guide is for UK tax residents employed by a non-UK company — typically a US tech employer (Google, Meta, Microsoft, Amazon, Salesforce, Stripe), an EU employer with a stock plan, or a previous employer where you still have unvested or unsold equity. If you’ve moved from the UK to another country and are managing a UK employer’s equity, the angle is different.
Tax circumstances are personal. UK PAYE on RSU vesting and the interaction with US withholding, payroll grossed-up tax, and CGT on subsequent share sales are complex. A qualified UK tax adviser specialising in cross-border equity compensation should always be consulted. The official GOV.UK guidance on tax and employee share schemes covers the framework. This guide covers only the currency execution.
Why currency matters for cross-border equity compensation
Three FX-specific issues that recur across UK-based tech employees:
- Vesting is recurring, not one-off. Most US tech equity grants vest on a 1-year cliff then quarterly for 3 years. That’s 13 separate FX exposures per grant, each subject to the brokerage’s default FX margin if not optimised.
- Sell-to-cover settles in foreign currency. Most employer plans automatically sell a portion of vesting RSUs to cover withholding tax — leaving the remaining shares (or USD cash from immediate sale) in the brokerage account. The cash side typically defaults to USD until you act.
- Brokerage auto-conversion costs more than people realise. Schwab, E*TRADE, Fidelity Stock Plan, and Morgan Stanley Shareworks typically charge 1.0–1.5% to convert USD to GBP on withdrawal, often with a wire fee on top. On a $100,000 annual sell-to-cover that’s around £1,000+ per year of avoidable cost.
Anthony Bull, CEO of Cambridge Currencies, comments that the most common pattern Cambridge Currencies sees with UK tech employees is automatic acceptance of the default brokerage FX rate — not because it’s competitive, but because the alternative requires setting up a separate broker relationship the employee hadn’t thought of. Once optimised, most clients save 60–80% on FX cost across each year’s vesting schedule.
For wider context on GBP/USD, see our USD forecast 2026 and the GBP/USD pair page for the live rate.
What’s the typical RSU vesting and conversion cycle?
| Stage | Timing | Currency outcome | UK tax impact |
|---|---|---|---|
| RSU grant | Day 1 / refresh | None — unvested | None |
| Vesting (cliff or quarterly) | Per vesting schedule | USD value enters PAYE; sell-to-cover settles USD cash | UK PAYE on vest value (income tax + NICs) |
| Hold or sell remaining shares | Employee choice | USD cash from sale; or shares held as USD-denominated asset | UK CGT on subsequent sale (gain since vest) |
| Withdraw USD to UK | Employee choice | USD-to-GBP conversion event | None on conversion itself; CGT already triggered |
The currency execution decision sits at the last stage. Brokerage auto-conversion takes the simplest path; a specialist broker takes the cheapest path.
What are the main ways to convert RSU proceeds?
| Method | Typical FX margin | Per-vest cost on $25k | Best for |
|---|---|---|---|
| Brokerage auto-conversion | 1.0–1.5% | $250–$375 | Speed, smaller vests under $5k |
| Wise / Revolut from US bank | 0.4–0.7% | $100–$175 | Once funds are in your own US bank |
| Specialist currency broker | 0.3–0.8% | $75–$200 | Quarterly vests of $10,000+, predictable cadence |
For predictable quarterly vests above $10,000, a specialist broker plus a regular USD-to-GBP transfer schedule is typically the cheapest. For very small vests below $5,000, the saving versus brokerage auto-conversion may not justify setting up a separate workflow.
How do you optimise the conversion of vested equity proceeds?
- Open a specialist currency broker account once. UK ID verification typically takes one working day. Done once, supports all subsequent vests.
- In your employer’s brokerage portal, opt out of auto-conversion to GBP. Most platforms (Schwab Stock Plan, E*TRADE, Fidelity Stock Plan, Morgan Stanley Shareworks) let you choose to keep withdrawal proceeds in USD. Choose USD.
- After each vest and any same-day sale, withdraw USD to the specialist broker’s USD client account. The wire instructions are USD-to-USD — no FX at this step. Typically clears in 1–3 working days from the brokerage to the specialist.
- Convert at the specialist broker. For most UK tech employees, the simplest pattern is convert-on-receipt at spot rate. For employees who track the GBP/USD rate, staged conversion across 4–6 weeks per vest can smooth volatility.
- Receive GBP in your UK current account. Faster Payment from the broker, typically same-day or next-day.
- Keep records for HMRC. Vest date, USD value at vest (this is the PAYE tax point), USD-to-GBP rate at vest (HMRC’s published rate), and the rate you actually converted at. Subsequent share sales (where you held rather than sold-to-cover) trigger UK CGT on the gain since the vest date.
When does a forward contract make sense for RSU vests?
Forwards are less commonly used for routine RSU conversion than for one-off events like business sales. Three scenarios where they do add value:
- Pre-IPO RSUs at a defined liquidity event. If you hold pre-IPO RSUs that will become liquid on a specific lockup expiry date, a forward can lock the GBP value of the planned sale at lockup expiry.
- Large refresh grants vesting on a cliff date. A $500,000 cliff vest 12 months out is a known future USD inflow. Forward contracts can fix today’s GBP/USD rate for the planned conversion at vest.
- Returning UK expats with US-employer equity. If you’re moving back to the UK with a known schedule of remaining vests, a forward removes FX uncertainty over the post-arrival vesting calendar.
Will Stead, head of currency at Cambridge Currencies, observes that most UK tech employees with regular quarterly vests use the specialist broker for the FX margin saving but stick to spot conversion rather than forwards — the rationale being that the recurring cadence naturally averages out medium-term FX volatility, similar to dollar-cost averaging on an investment side.
Why use a specialist broker for RSU conversion?
Four practical reasons:
- Better rates than brokerage auto-conversion. Specialists work on tighter margins than employer stock plan platforms. On a $100,000 annual sell-to-cover that’s around £700–£900 of saving per year, compounding over a 4-year vesting cliff to roughly £3,000–£4,000.
- One account, all vests. Once set up, every quarterly vest goes through the same workflow. No re-onboarding, no per-transaction FX shopping.
- Forwards for known future events. Pre-IPO lockup expiry, cliff vests on refresh grants, and known return-to-UK schedules can all be hedged with forward contracts. Most retail brokerage platforms don’t offer this.
- Phone-based dealing with a named contact. For senior tech employees with seven-figure equity packages, a single named UK dealer who knows the vesting calendar is materially more useful than re-explaining the situation each quarter.
Cambridge Currencies operates via FCA-authorised partners Currencycloud (FRN 900199) and ScioPay (FRN 927951). Client funds are held in safeguarded client accounts throughout the transfer process. For the underlying tools, see our forward contracts explained reference and the repatriating foreign stocks and ETFs guide for the post-vest share holding scenario.
Frequently asked questions
For quarterly vests above $10,000, withdraw USD from your employer’s brokerage to a specialist currency broker’s USD client account, then convert at the broker’s FX margin (typically 0.3–0.8%). Avoid the brokerage’s auto-conversion (1.0–1.5%) and avoid receiving USD into a UK retail bank for conversion (2–4%). On a $100,000 annual vest cadence the saving versus auto-conversion is around £700–£900 per year.
UK PAYE typically applies on the vest date, based on the GBP value of the vested shares using HMRC’s published exchange rate for that date. Most UK employers of UK-based employees handle this through payroll, with sell-to-cover automatically funding the tax withholding. The interaction with US withholding (where applicable) is handled by the employer’s tax team. A qualified UK tax adviser specialising in cross-border equity should always be consulted on individual circumstances.
Most UK tech employees convert on receipt because they spend in GBP. Holding USD long-term creates ongoing FX exposure relative to sterling spending needs. Some UK employees with future US expenditure (mortgage on a US property, US tuition fees) hold the USD specifically to avoid round-tripping. The decision is between converting at today’s rate versus holding speculatively for a better future rate — most clients convert on a regular cadence rather than market-timing.
Yes, via a forward contract — but only when the vest date is committed and the USD amount is reasonably known. A forward fixes today’s GBP/USD rate for a payment up to twelve months ahead, paying a 10% deposit on booking. Forwards work best for known cliff vests, pre-IPO lockup expiries, and returning UK expats with known remaining vesting schedules. They’re less suited to routine quarterly RSU vests where natural averaging across vests typically achieves similar smoothing.
Yes, if you hold the shares post-vest and sell them later for more than the vest-date value. The UK CGT base cost is the GBP value of the shares on the vest date (already taxed via PAYE). Subsequent gains are taxable at 18% or 24% depending on income band, with the 2024/25 annual exempt amount of £3,000. Sell-to-cover and immediate sale on vest typically don’t trigger CGT because there’s no gain between vest value and sale price. A UK tax adviser specialising in cross-border equity should always be consulted on individual circumstances.
Most major employer stock plan platforms support USD withdrawal: Schwab Stock Plan Services, E*TRADE, Fidelity Stock Plan Services, Morgan Stanley Shareworks, and Computershare typically all offer USD wire withdrawal as an option in the withdrawal flow. The default is often auto-convert to GBP for UK-based employees — the option to keep USD usually requires actively selecting it.
Typical timeline: same-day vest and sell-to-cover settlement; 1–3 working days to wire USD from the employer brokerage to a specialist broker’s USD client account; 1 working day to convert at the broker; same-day or next-day Faster Payment to the UK current account. Total typically 3–6 working days from vest to GBP in the UK bank.
Speak to a Cambridge Currencies specialist about your RSU strategy
If you’re a UK tech employee with US RSU vests and want clear guidance on the GBP/USD rate, the option of forward contracts on cliff vests or pre-IPO equity, and a single named dealer to handle each quarterly conversion by phone, request a quote and we’ll talk you through it. We work routinely with UK employees of US tech companies across all major platforms.
