CGT vs Income Tax on shares

XVII

Would anyone be able to clarify the difference between cases when you need to pay CGT versus Income Tax on shares for me please? I've googled something about dividends but not sure how applicable that is to Ireland.

Here is my case: our company provided us with some shares with a certain period before they could be exercised (I believe this process is called vesting). After that period, I exercised a portion of shares and received a lump sum. When paying tax, I filled out Form 11 and put all this additional income under
"PAYE/BIK/Pensions (2)

Share Options exercised, released or assigned in"

as this looked most appropriate to me. Was this wrong, and was this amount supposed to be put under "Capital Gains" instead, and therefore taxed differently? Is there any link to revenue with information how to actually distinguish between the two? Thanks all

relax carry on

XVII wrote: »

Would anyone be able to clarify the difference between cases when you need to pay CGT versus Income Tax on shares for me please? I've googled something about dividends but not sure how applicable that is to Ireland.

Here is my case: our company provided us with some shares with a certain period before they could be exercised (I believe this process is called vesting). After that period, I exercised a portion of shares and received a lump sum. When paying tax, I filled out Form 11 and put all this additional income under
"PAYE/BIK/Pensions (2)

Share Options exercised, released or assigned in"

as this looked most appropriate to me. Was this wrong, and was this amount supposed to be put under "Capital Gains" instead, and therefore taxed differently? Is there any link to revenue with information how to actually distinguish between the two? Thanks all

Your employer should have told your exactly what to do. Depending on what type of scheme you are in you may have had to pay your tax within 30 days of exercising the shares. CGT may also be due when you sell the shares. Income tax is due on any dividends you receive from the holding of the shares.

XVII

relax carry on wrote: »

Your employer should have told your exactly what to do. Depending on what type of scheme you are in you may have had to pay your tax within 30 days of exercising the shares. CGT may also be due when you sell the shares. Income tax is due on any dividends you receive from the holding of the shares.

there were no dividends, and employer said they don't provide financial advice.

relax carry on

XVII wrote: »

there were no dividends, and employer said they don't provide financial advice.

That's nuts. You've opted to take shares in their company in lieu of renumeration and they've literally left you on your own. Did they give you paperwork relating to the scheme you are under? The link below details the taxation issue of the various share schemes.

https://www.revenue.ie/en/tax-professionals/tdm/share-schemes/index.aspx

XVII

relax carry on wrote: »

Did they give you paperwork relating to the scheme you are under?

oh yes, they did. Might need to dig that up then. Thanks for the link!