CGT on ESOP

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viz06

Registered User
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I am looking for some information related to calculating CGT on the ESOPs.

Here is my case

I got 4000 ESPOs for 5 cent each with a market value of 60 cents. I paid the 'Relevant Share option tax' when I exercised these. That was in year 2007. March this year I sold off all 4000 @ 180 cents of them but the shares were split 1:2 sometime in 2009.

Should the CGT be calculated as

8000 * (1.80 - .60) = 9600 euros 25% of which would be 2400

2400 - (Less: Personal Exemption 1,270) = 1130 euros

Are my calculation correct?

Thanks for your help.
 
I dont think that you have calculated the effect of the share split correctly.

The numbers in your post are not clear on a few points.

You say you sold all 4000 shares at 1.80 a share, but you owned 8000
Did you sell 8000 shares at 1.80 a share or 4000 at 1.80 a share and still hold 4000 ?

If you sold all 8000 at 1.80 a share, then the following figures should be correct.

You got 4000 shares with a market value of 0.6 = €2,400

You sold 8000 shares at 1.80 a share so you got €14,400

Therefore the gain is €12K.

25% of 12K is 3000 - 1270 = €1730
 
1270 is deducted from the gain not the tax.
If the gain is 12k - 1270 = 10730 x 25%= €2682.5
 
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