How do i inform the government of my shares?

fret_wimp2

I have a few shares (only about 1-2k worth) from my last job.

I need to declare them with the government so that im not breaking the law.

what form do i use to tell the government about my shares and how do i pay them any tax owed?

ive had a search around the revenue.ie site but its not helpful at all.

thanks.

mari2222

I presume you paid stamp duty when the shares were transferred to you.

You may be liable to capital gains tax when you dispose of them/sell them or transfer them.

In the meantime, if you received a dividend for the year, you need to disclose it in your return of income each year - what a sole trader completes to show profits.

fret_wimp2

Im sure i am liable for capital gains, but nothing i can do about it so il just pay what it is.

Regarding disclosing them as a sole trader does with profits, im not a sole trader wth a registered business or anything, so AFAIK its a different process for a PAYE to disclose them. i just have not been able to find out how ( what form to use etc)

mari2222

Here is the extract from the revenue site - go to self-assessment from the homepage:


Self-Assessment gives you greater control and responsibility over your tax affairs. It applies for Income Tax purposes to:

• Self-employed people (i.e. people carrying on their own business including farming, professions or vocations)
• People receiving income from sources where some or all of the tax cannot be collected under the PAYE system, for example: profits from rents, investment income, foreign income and foreign pensions, maintenance payments to separated persons, fees, profit arising on exercising various Share Options/Share Incentives.

Under Self-Assessment there is a common date for the payment of tax and filing of Tax Returns, i.e. 31 October. This system, which is known as 'Pay and File' allows you to file your return and pay the balance of tax outstanding for the previous year at the same time. Under this system you must:

• Pay Preliminary Tax for the current tax year on or before 31 October each year,
• Make your Tax Return after the end of the tax year but not later than the following 31 October.
• Pay any balance of tax due for the previous tax year on or before 31 October.
• Pay any Capital Gains Tax on disposals made between 1 January and 30 September of the current tax year.

Toblerone1978

fret_wimp2 wrote: »

I need to declare them with the government so that im not breaking the law.

To be clear, you don't need to "declare" them if you are just simply holding them.

However if you do get any income from them, either by dividend or selling them, you would need to declare this on the income tax return. The timing of payment will differ between capital gains tax and income tax.

dbran

Hi

There is not enough info given in order to answer your query.

In certain circumstances where the amount that you paid for the shares is less than the market value of the shares (ie it is a share option that you have exercised while you were employed in your last job), you will be liable to pay income tax on the difference between the market value of the shares and the price you paid for them.

This is returned on Form RTSO and is due to be filed and the tax paid at the 41% rate within 30 days of the exercise of the share option. If you do a search on revenue.ie you will be able to find the form.

You would also have to return this income tax on your tax return Form 11.

In addition, if you receive any dividends from the shares, you will be subject to income tax on these amounts also. If you make a gain on the disposal of the shares you will be subject to CGT.

You should obtain professional advise regarding this.

Kind Regards

dbran