Form11 and proceeds from selling shares

[Draff87]

First Tax return so some questions for you all.

With the company I work for:

- I get shares as part of my benefits package that vest over a 5 year period.
- when the shares vest, benefit in kind gets deducted at source
- in 2013 I sold shares for the 1st time and made a capital gain on these
- I paid CGT before the end of 2013

I now have to fill in my 1st Form11 which covers the 2013 tax year and I want to double check what I need to include on that form. Here is what I think it is:

(1) The Benefit in kind that was already paid on the shares
(2) The Capital Gain that I made and the tax that I paid
(3) The proceeds that I made from selling the shares as this is treated as income (I am not sure on this one. I've already paid tax twice on these shares. Surely I'll not get hit again?)

Thanks,

D

 

[Zacchaos]

Sounds like a Restricted Share Scheme/Share Clog Scheme. If this is the case you would have paid taxes (BIK as you said) on 40 or 50% of the market value of the shares at the time they vested - called an abated amount. Your base cost for CGT calculation is the abated amount - you pay CGT on sale proceeds less base cost less your annual personal exemption (€1,270). There is no amount treated as income as you suggested at (3).

If you have already paid CGT, a CGT calculation has been completed - probably by your company or advisors running the share scheme - you should have a copy of this and use these figures for your Form 11. Your employers or advisors running the scheme should be able to guide you through the completion of the Form 11 and to how the transactions are taxed.