How to account for free shares from an investment platform as a referral bonus?

[balders93]

Say I received €100 of shares at the start of the year from a trading platform as a referral bonus, and sold them now for €120, what are the total tax implications for the referral bonus, and the gains since?

If the trading platform gave €100 of cryptocurrency instead of shares, that was later sold for €120, would the same apply?

 

[ClubMan]

Say I received €100 of shares at the start of the year from a trading platform as a referral bonus, and sold them now for €120, what are the total tax implications for the referral bonus, and the gains since?

If this was a company share incentive scheme then the €100 would be assessable for income tax/PRSI/USC and then the €20 capital gain would be assessable for CGT. I would expect that the treatment here would be the same?

If the trading platform gave €100 of cryptocurrency instead of shares, that was later sold for €120, would the same apply?

I would expect so assuming that crypto is considered by Revenue to be a capital asset.

 

[Brendan Burgess]

If the amounts are realistic - €100 occasionally, Revenue is not interested.

But if it's a larger amount or more frequent, then you should declare it.

 

[ClubMan]

I assumed that €100 was merely a nominal figure for illustrative purposes but the actual amounts involved might be larger. If it's actually just €100 and a gain of €20 then I wouldn't worry about it either.

 

[TomEdison]

Say I received €100 of shares at the start of the year from a trading platform as a referral bonus

Assuming that you don't work for this trading platform or the operator of it, but are just a customer, I don't see how this could be assessable to income tax. It's just a gift. It's well within the small gifts exemption, so no CAT is payable.

On disposing of the asset, you have gain of €20. You're treated as acquiring a gifted asset at market value on the date of gift, so your gain is €[120-100]. This is within the annual small gains exemption so, if you have no other gains in the years, no CGT is payable.

 

[Corola]

If this was a company share incentive scheme then the €100 would be assessable for income tax/PRSI/USC

That's different - you are receiving a benefit-in-kind from your employer on the free/discounted amount.

A trading platform is providing a service, the free shares are an incentive to do business with them. It's no different than receiving a €100 welcome credit from an energy provider or a €100 prepaid card from a broadband provider.