Hello, Our former company gifted us 300 shares when we were being taking over , They were given to us at 7 euro per share and are now worth just over 10 euro per share, Our profit now stands at over just over 900 euro , Now word has it that we would be hit for capital gains tax if we profit from the shares by over 1000.00 euro, Is this the case if so I will sell them before this happens, Thanks in advance, Cumnor.
Should I sell shares when I have €1,000 gains on them?
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What documentation came with the gift ?
Hi, And thanks for replying, Billo we did get documentation but I dont remember exactly what it was , We are dealing with etrader and they are based in the states, Vandriver we did not pay anything towards the shares, Like I said they gave us 300 shares in the company worth 7 euro each , they are now worth 10 euro each and if we sell we make 3 euro x 300 making 900 euro profit, Berni thanks for the info, A few people in work cashed in their shares lately and say they paid tax on their profit , I believe you are right and will keep tabs on this, Again thanks for your help lads.
Brendan Burgess
Founder
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How many employees are in this company?
If there are a few of you in the same position, you should get an accountant or tax adviser to set out the best strategy for you. Even better, ask your employer's accountants to give you advice. They probably advised on the set-up of the scheme.
If there are a few of you in the same position, you should get an accountant or tax adviser to set out the best strategy for you. Even better, ask your employer's accountants to give you advice. They probably advised on the set-up of the scheme.
Well over the years I've heard many weird reasons for selling shares, but selling them because one might make too much profit is a new one on me.....
In my book there are only three good reasons to dispose of your holding:
- You need the cash
- You have found a better investment opportunity
- The company's long term outlook is grim
As far as I know CGT is only payable when you dispose of an asset and I'd far prefer to be paying tax on 10K than 1K, but then that is just me.
In my book there are only three good reasons to dispose of your holding:
- You need the cash
- You have found a better investment opportunity
- The company's long term outlook is grim
As far as I know CGT is only payable when you dispose of an asset and I'd far prefer to be paying tax on 10K than 1K, but then that is just me.
dereko1969
Registered User
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Yep, my mind is boggling at the moment.
Hi
I think this may be relevant also.
http://www.revenue.ie/en/tax/it/leaflets/benefit-in-kind/other.html#section1
Where shares in a company are given by the company to an employee free of charge or at a discounted price or under a share scheme, the employee is chargeable to tax on the benefit accruing to him or her. However, PAYE and PRSI do not apply. The benefit must be returned on the employee's return of income form. The employer must also make a return of the benefit on form SO2 or form P11D, whichever is appropriate, by the appropriate due date.
So did you make a tax return back then. You also have a cgt liability on the gain between the market price of the shares of €10 less the deemed cost of €7.
capnhand
I think this may be relevant also.
http://www.revenue.ie/en/tax/it/leaflets/benefit-in-kind/other.html#section1
Where shares in a company are given by the company to an employee free of charge or at a discounted price or under a share scheme, the employee is chargeable to tax on the benefit accruing to him or her. However, PAYE and PRSI do not apply. The benefit must be returned on the employee's return of income form. The employer must also make a return of the benefit on form SO2 or form P11D, whichever is appropriate, by the appropriate due date.
So did you make a tax return back then. You also have a cgt liability on the gain between the market price of the shares of €10 less the deemed cost of €7.
capnhand
mandelbrot
Registered User
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Mine too!
OP, do you figure out at the start of the year how much money you can earn before you start paying income tax, and then only do that much work? That's exactly the same thing as what you're talking about doing with the shares.
Thanks for the clarification , I do not buy shares every day of the week so I hope you understand why I put this question on this forum, I was lead to believe that my shares would just about go over the 1000.00 euro mark and I would have to pay tax on that, But not under that figure, I am planning on selling in the next few days and that is the reason I asked for information on this , Rather then vague information doing the rounds in the workplace, Mandelbrot , I pay my income tax and every other stealth tax that comes my way from the start of the year to the end of it, I was just asking for info on something I have no experience with, I am sorry if some peoples minds were boggled to the point they had to be sarcastic, Again thanks , Regards Cumnor.
mandelbrot
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Sorry if it came across as sarcastic, I was just trying to give you a simple example that would make it clear that the logic of what you were proposing made no sense.