Calculating Capital Gains Tax on vested shares

whatever76

Can some one help me out on how best to calculate Capital gains to pay on work shares that I am selling over the next month.

Note : I have already paid tax at source for these shares when they vested so I understand now they are just subject to Capital gains tax.

Selecting volume of shares the tool reporting back that I have made ~$60k gain on the shares.

- How much approx. do I owe on Capital gains. ( How best to calculate)
- Do I pay now or can I wait to submit as part of 2018 self assessment next year ( form 11 )
- If I need to pay now assume I can do online and can you advise what form ? I assume is separate to Form 11 self assessment

thx - appreciated.
I just cant deal with Taxation and trying to make sense of taxation English so need to be as simple as possible !!

TaxPro

whatever76 wrote: »

Can some one help me out on how best to calculate Capital gains to pay on work shares that I am selling over the next month.

Note : I have already paid tax at source for these shares when they vested so I understand now they are just subject to Capital gains tax.

Selecting volume of shares the tool reporting back that I have made ~$60k gain on the shares.

- How much approx. do I owe on Capital gains. ( How best to calculate)
- Do I pay now or can I wait to submit as part of 2018 self assessment next year ( form 11 )
- If I need to pay now assume I can do online and can you advise what form ? I assume is separate to Form 11 self assessment

thx - appreciated.
I just cant deal with Taxation and trying to make sense of taxation English so need to be as simple as possible !!

The gain subject to CGT is calculated as the difference between the price you sell them for less the market value of the shares when they were exercised. The rate of CGT is 33%. There's also an annual CGT exemption of €1,270.

Here's an example. Your employer grants you 1000 share options which vest in 3 years. For simplicity let's say there's no exercise price, i.e. you just get them after 3 years. Once vested, you immediately exercise them when the market value is €1 per share. You are charged to tax at source on the €1000 value of the shares. A couple of years later you decide to sell the shares when they are worth €5 per share (i.e. €5,000). The gain is €4,000 (5,000-1,000). You then subtract the annual exemption of €1,270, leaving a taxable gain of €2,730. Multiply by 33% leaves you a tax liability of €901.

Payment and filing dates are different. If sold between 1 January-30 November 2018, the liability is due to be paid to Revenue by 15 December 2018 at the latest. If sold in December 2018, the liability is due to be paid by 31 January 2019 at the latest. This can be paid through the Revenue website. The filing of the details relating to the disposal can be included in your self-assessment return next year (a separate CGT return is only needed for people who don't currently file a tax return).

whatever76

thanks a mill TaxPro - that makes sense as I cry into Keyboard when I calculated what I have to pay there now based on todays value gain … I have my 2017 form 11 yet to submit there ( need to pay tax on last year dividends !) - can I submit with this if I sell over the next couple of weeks or do I have to do another form as this is a 2018 tax transaction?

thanks again for reply - much appreciated !!

TaxPro

whatever76 wrote: »

thanks a mill TaxPro - that makes sense as I cry into Keyboard when I calculated what I have to pay there now based on todays value gain … I have my 2017 form 11 yet to submit there ( need to pay tax on last year dividends !) - can I submit with this if I sell over the next couple of weeks or do I have to do another form as this is a 2018 tax transaction?

thanks again for reply - much appreciated !!

It can’t go on your 2017 return as it’s a 2018 transaction. If it’s the only transaction you need to self-assess for in 2018, then you don’t need to do a Form 11, and can instead file a simpler CG1 (due at the same time, i.e. October 2019).

whatever76

thanks again Tax Pro … great help … no looking forward to paying this !!