How to deal with shares in an Irish Employee Share Plan

[worrywart]

In 2010 I bought shares in a revenue approved Irish Employee Share Ownership Plan.

The shares must be held by the Trustee for a minimum of two years from the date on which they are allocated to you. I kept the shares until May 2013 and I then sold them making a small profit. What I am wondering about is do I need to fill in a form RTSO1 obviously I am over the thirty days but to be honest am just after becoming aware after reading through past posts in relation to shares that I may have to complete this form.

 

[dublin66]

If you got shares from an approved ESOT and held for the required period then there is no income tax on allotment. Were they held for two years or three years? While I'm not 100% on it I thought that there was a required holding period for three years.

If you sold them at a profit then the profit is liable to capital gains tax @ 33%. The CGT is payable on 15th December this year and will need to file a tax return (probably a form 12) for 2013 by 31 October 2014.

RTSO is not required unless you are exercising share options and this is different from a Revenue approved ESOT.

 

[worrywart]

Hi dublin66 the shares were actually held for three years as I bought them on 01st April 2010 and sold them in May 2013. Thank you for the advice as I had searched through all the documentation my company had given me.

On the form 12 which you will see from my previous posts I am trying to complete for 2011 and 2012 do I need to advice that I bought shares in 2011 and 2012 under this same scheme? I am thinking maybe on form 12 where they ask under Employment and Investment incentive?

Thanks for your advise a little bit lost when it comes to shares.

 

[dublin66]

For purchases of shares the only place you should put the shares is on the acquisition of chargeable assets which is the capital gains tax section at the back of the form.

If the shares are issued under the Employment and Investment Incentive then they should be put there. However I would be surprised if shares issued under a Revenue Approved ESOT can also qualify for the EIS scheme.