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First in first out treatment of shares in a trust vs market shares

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  • 27-02-2024 4:48pm
    #1
    carveone
    Registered Users Posts: 1,212 ✭✭✭


    Hi everyone,

    There's a bunch of legislation (Section 511 TCA) around something called an Approved Profit Sharing Scheme or APSS. In essence you can put your bonus or what have you into company shares that are held in trust for 3 years. You can't sell them (well, you can sort of but you incur nasty income tax liabilities).

    Something dawned on me though. Let's say the trustees of the APSS buy 20 shares of my company X in Jan 2022. Later I go to the stock market and I buy 20 shares of X (no, not twitter), say in Jan 2023.

    A year later I sell 10 shares. According to revenue's first-in-first-out rules, the shares being sold are those "acquired" earliest. Which are these?

    Have the APSS shares been "acquired" by me in January 2022? I don't see how because I can't sell them because they're held in trust. I believe the acquired date is the release date (which will be Jan 2025) but damned if I can find a single reference to this anywhere. I asked my HR dept. They said they don't give tax advice (which means they don't know).

    I thought someone might have seen this before - just because something is obvious, doesn't mean it will be when explaining it to Revenue ☺️



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