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Stock Option Help !!!!!!

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  • 05-06-2007 11:25pm
    #1
    The Dan
    Closed Accounts Posts: 6 ✭


    Please help as I'm going mad. Nobody seems to know !!
    Here's my question:
    Are Stock Options liable for A) 20% CGT or B) 42% :confused:
    These are company stock options AND NOT SHARES

    Any help would be great - thansk in advance !!


Comments

  • Options
    #2
    Irish Wolf
    Registered Users Posts: 2,178 ✭✭✭Irish Wolf


    From what I remember they are liable for 42% upon vesting on,,, the market price minus the option price (assuming there is an increase on the option vs. market price on the day of vesting)... if you hold on to the stock and they increase beyond the market price on vesting day then they are subject to 20% CGT over €1270...


  • Options
    #3
    The Dan
    Closed Accounts Posts: 6 ✭The Dan


    I thought 20% CGT (on the gain) but I'm afriad that Options are different to shares and I don't know the difference exactly. RTSO is 42% but I don't want to pay that if I only need pay 20% CGT


  • Options
    #4
    Irish Wolf
    Registered Users Posts: 2,178 ✭✭✭Irish Wolf


    The Dan wrote:
    I thought 20% CGT (on the gain) but I'm afriad that Options are different to shares and I don't know the difference exactly. RTSO is 42% but I don't want to pay that if I only need pay 20% CGT

    Yup - that's the booger... RTSO... Once they vest you're liable to the 42% and you're only liable to the CGT if your hold and sell at a profit later on...


  • Options
    #5
    The Dan
    Closed Accounts Posts: 6 ✭The Dan


    Hmmm, but I didn't buy these - they're options - I'm just exercising them


  • Options
    #6
    The Dan
    Closed Accounts Posts: 6 ✭The Dan


    The Dan wrote:
    Hmmm, but I didn't buy these - they're options - I'm just exercising them
    They were given by the company - sorry, I'd confuse a saint !


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  • Options
    #7
    Irish Wolf
    Registered Users Posts: 2,178 ✭✭✭Irish Wolf


    The Dan wrote:
    Hmmm, but I didn't buy these - they're options - I'm just exercising them

    Yup - no difference - you're liable for the tax on them... Not 100% sure but I think if they were gifted pre-2003 then you are only liable for the 42% if/when you exercise them - otherwise you're liable upon vesting...


  • Options
    #8
    The Dan
    Closed Accounts Posts: 6 ✭The Dan


    Irish Wolf wrote:
    Yup - no difference - you're liable for the tax on them... Not 100% sure but I think if they were gifted pre-2003 then you are only liable for the 42% if/when you exercise them - otherwise you're liable upon vesting...
    Blast ! That's practically half ! Takes the good out of having them in the first place :-(

    Oh well, thanks a mill. for the advice. I need a cigarette now !


  • Options
    #9
    Irish Wolf
    Registered Users Posts: 2,178 ✭✭✭Irish Wolf


    The Dan wrote:
    Blast ! That's practically half ! Takes the good out of having them in the first place :-(

    Oh well, thanks a mill. for the advice. I need a cigarette now !

    Meh! Tell me about it... have a look here - seems it only refers to exercising but if I recall correctly then there are similar rule applicable to vesting as of late...

    But I'm sure someone more qualified than a lowly engineer like myself will correct me... ;) either way I'm sure you're going to get stung for the full 42% at some stage...


  • Options
    #10
    The Dan
    Closed Accounts Posts: 6 ✭The Dan


    Irish Wolf wrote:
    Meh! Tell me about it... have a look here - seems it only refers to exercising but if I recall correctly then there are similar rule applicable to vesting as of late...

    But I'm sure someone more qualified than a lowly engineer like myself will correct me... ;) either way I'm sure you're going to get stung for the full 42% at some stage...
    Cheers ! This is depressing stuff indeed - Clear as mud :-) Looks like I'm off to visit the finance dept. tomorrow.


  • Options
    #11
    Irish Wolf
    Registered Users Posts: 2,178 ✭✭✭Irish Wolf


    Quick! Cancel the yacht... ;)

    Still 58% of something is still 58% more than nothing...


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