BIK on Shares

R

rocally

Guest
Hi

Can someone tell me if I have to pay BIK on profit made from shares I got through a work scheme. I only made a small profit so im wondering is there an amount you have to pass ?
 
how exactly did you get the shares and how exactly did you make the profit?
 
I bought the shares through a discounted company share scheme about 6 months ago and sold them this month- the profit was in and around €1000

Thanks
 
The discount (being the difference between the market value at the date you got the shares and the price you paid for them) is subject to income tax at your marginal rate.

The difference between the market value on the date you got them and the price you sold them for, is subject to capital gains tax. However, as the first €1,270 of gains each year is exempt from tax, you will have no CGT to pay (provided you don't have other taxable gains in the year).
 
You may need to deal with the BIK income tax liability on the discount at acquisition time via an RTSO1 within 30 days of acquiring the shares. Unless it's a Revenue approved scheme with an alternative tax treatment (e.g. deferral of liabilities).

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As explained above any capital gain over and above the market value of the shares at the time of acquisition (albeit at a discounted price) is assessable for CGT.
 
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