Selling Stocks

Haz619

Hi all,
I have started investing in stocks through a purchase program with the company that I work for. My question is if I hold those stocks for several years, I’ve heard the word maturing mentioned before. Will I be able to cash out without getting hit hard with the capital gains tax?

Thanks

topper_harley2

Check out http://www.noonecasey.ie/guide-to-irish-tax/employee-share-schemes/ and http://www.noonecasey.ie/guide-to-irish-tax/employee-share-schemes/, and if all else fails, ask your employer.....

Haz619

Thanks, I read through those but still having a little trouble understanding, it’s all v new to me

BrokenArrows

Usually when purchasing shares through your employer they will give you a discounted rate.

eg. They offer you the shares at 5.00 per share but the share is currently trading at 5.50.

However usually you are not able to sell the shares for a number of years. eg. 3 years.

In 3 years time they will have "matured" and you can sell them or continue to hold them.

The risk here is that you are stuck with the shares for 3 years and cannot sell regardless of how good or bad the price is.

If in 3 years you sell and make a profit then you will have to pay CGT if your profit exceeds the CGT threshold of €1270.

nailer54321

Just a question on this, if you sell your stock and do not earn over the 1270 profit do you still have to declare it to revenue, or do you just not do anything, is there a form you need to fill out and return it to revenue were the income came from.

BrokenArrows

nailer54321 wrote: »

Just a question on this, if you sell your stock and do not earn over the 1270 profit do you still have to declare it to revenue, or do you just not do anything, is there a form you need to fill out and return it to revenue were the income came from.

You just ignore it. No need to report anything.