Sharesave - Capital Gains/USC/PRSI

timotei11

Hi,

I posted the below on another forum, but have so far to recieve any response. I was wondering if one of you educated souls could maybe help me out...


Hi all,

Thanks for taking the time to read my thread. I hope I'm posting in the correct area of the site.

I have a bit of an issue with a sharesave that is about to mature that I would like some help with.

I have purchased shares in my company scheme for 14.90 and will sell for 55.00 euro.

I hadn't looked into it greatly, but assumed I had to pay GCT of 25% on my profit and that was that.
I got a letter through the post today from my company though informing me of extra taxes (USC and PRSI). This letter didn't state anything about how much this will equate to.

What i'd like to know is how much will I be left with basically.

200 a month for 36 months = 7200.
Shares purchased at 14.90 and will be sold at (lets say) 55.00 = return of 26,577.

If anyone can help me calculate this i'd be very grateful. At a bit of a loss with the share market and it's working.

Thanks again,
Timotei.

srsly78

It gets taxed just like any extra income, nothing special about it being from shares.

Just assume you earned an extra X euros from a job on the side, you will have to pay tax on this as normal. So if you are already paying the marginal rate you can assume this extra income gets hit for the full whack - 52% (tax+usc+prsi) or maybe even higher if self-employed.

Delta2113

Considering a Sharesave scheme - it's a three year one with small interest added every year to savings.

Is this interest free from DIRT?

It's an approved scheme.

Carawaystick

I'd assume this scheme deducts from your salary and buys shares in your employers company, possibly at a discount?

So I'd say that changes in legislation mean that usc and prsi apply to the deducted salary portion now and possibly to the BIK you get from buying shares at a discount to the market value. Those would probably have been income tax free at the time you bought the shares.
Then you would pay CGT on the increase of the capital value of the shares between buying and selling them.

That's how a similar scheme worked about a decade ago for me, I'd imagine similar principles apply but details may have changed. Ring Revenue with a nice round number figure example ( bought at $15, sold at $55 $40 profit per share., rather than bought at 14.90). Ask about when you've to pay, as the pay and file deadline is coming up.
Also ask about the rate of usc you've to pay as you might have to pay the old higher rate, or the new lower rate.

If they're unclear or vague, then see about advice from an accountant.

EverythingGood

I've a sharesave maturing in January, similiar situatuon...will my employer automatically deduct all necessary taxes at source?