Tax on shares

schinkowski

Hi,
I am thinking about selling some shares i got years ago but can't figure out how the CGT actually works.
What section is that under in myAccount?
Do I calculate the amount of tax payable myself?
Do they need receipts?
The stupid revenue website doesn't explain any of this in a way that a normal person can actually understand. Feels like they make this deliberately complicated so they can screw me over after I file it incorrectly.

Stanford

Yes the Revenue are personally keeping the law on CGT on share disposal secret from you (and only you) so they are screw you........!!!

Skelet0n

http://bfy.tw/JiUs

daheff

Try looking at Form 12


https://www.revenue.ie/en/gains-gifts-and-inheritance/transfering-an-asset/how-do-you-pay-and-file-cgt.aspx


You have a CGT gain (hopefully). You are exempt for the first 1270EUR of a gain in each tax year...but you still need to file a return. Losses can be carried forwards too. Tax is at 33% (IIRC) on gains.


BUT ETFs are not included for CGT, there is a seperate method of reporting ETF gains and they are charged at a higher rate.

Skelet0n

daheff wrote: »

BUT ETFs are not included for CGT, there is a seperate method of reporting ETF gains and they are charged at a higher rate.

That is only UCITS ETFs.

schinkowski

Thanks for the serious replies guys.
It's not an ETF. I am a PAYE worker so from what I can see the share gain should be filled into Form 12 Section 77.

Apiarist

Do you buy shares at their marker price, or purchase them at a discount through an Employee Share Purchase Plan? If the latter, you ALSO need to pay (RTSO) tax on the amount of the discount, regardless of whether you keep or sell your shares:
https://www.revenue.ie/en/additional-incomes/employment-related-shares/employee-share-purchase-plans.aspx

schinkowski

victor8600 wrote: »

Do you buy shares at their marker price, or purchase them at a discount through an Employee Share Purchase Plan? If the latter, you ALSO need to pay (RTSO) tax on the amount of the discount, regardless of whether you keep or sell your shares:
https://www.revenue.ie/en/additional-incomes/employment-related-shares/employee-share-purchase-plans.aspx

Yeah it was through an ESPPs at a discounted rate. I'm pretty sure the tax on the discount was already paid when it came out of my payroll.

Apiarist

schinkowski wrote: »

I'm pretty sure the tax on the discount was already paid when it came out of my payroll.

That's convenient. In my case, I have to calculate and pay RTSO myself even though my company does the calculation each year to report the gain to the Revenue.

towger

victor8600 wrote: »

Do you buy shares at their marker price, or purchase them at a discount through an Employee Share Purchase Plan? If the latter, you ALSO need to pay (RTSO) tax on the amount of the discount, regardless of whether you keep or sell your shares:
https://www.revenue.ie/en/additional-incomes/employment-related-shares/employee-share-purchase-plans.aspx

RTSO applies when you sell Options granted by your employer. It does not relate to actual shares, purchased or granted.

Apiarist

towger wrote: »

RTSO applies when you sell Options granted by your employer.

Suuuure. Do share your opinion with your Revenue officer next time you need a tax clearance certificate :rolleyes:

Revenue wrote:

The tax due on the exercise of a share option is known as RTSO. You must pay RTSO within 30 days of exercising the options.

towger

victor8600 wrote: »

Suuuure. Do share your opinion with your Revenue officer next time you need a tax clearance certificate :rolleyes:

What ?

I’m saying exactly as Revenue do.
RTSO applies when you exercise options granted by your employer.

CGT applies when you sell shares , at a profit, compared to the price you bought them for.
Income tax applies to any discount that was given by your employer compared to market price on the day you bought them, in the case of the OP, his employer already deducted this.
So all he needs to do now is pay CGT.
He never mentioned Options, so RTSO does not apply.

Apiarist

towger wrote: »

I’m saying exactly as Revenue do.
RTSO applies when you exercise options granted by your employer.....

It is only my opinion, but in this context "exercise options" means "receiving shares at a discount", not "selling shares". Thus the RTSO should be paid within 30 days of receiving the shares. Of course, I am not a tax specialist, so I may be wrong :pac:

towger

victor8600 wrote: »

It is only my opinion, but in this context "exercise options" means "receiving shares at a discount", not "selling shares". Thus the RTSO should be paid within 30 days of receiving the shares. Of course, I am not a tax specialist, so I may be wrong :pac:

Share Options are not the same as Shares.
Exercise options does not mean receiving shares at a discount, completely different beast.