New tax on shares.

[thedaras]

Hi, A family member has just been informed by the company she works for ,that shares they are given this year will be taxed on their total worth.

It was news to her,and everyone else in the company,but payroll have said it was in the budget, (deep in there) so they now have to pay tax on shares that wont be cashed for three years.

Thought Id post this information as it would seem many are not aware of this.
And their incomes will be down,even more in October.

 

[ClubMan]

Do you mean share options granted/exercised under an Employee Share Option Scheme (ESOP) or Employee Share Purchase Scheme (ESPP)? Revenue approved or unapproved? The RTSO1 form has some information about changes to the tax treatment of shares exercised under approved ESOP/ESPP schemes since late last year in case that's what you mean?

http://www.revenue.ie/en/tax/it/forms/rtso1.pdf

 

[thedaras]

Hi Clubman, To be perfectly honest,I haven't a clue..

She just said that she gets shares every year,(which she can cash in ,in three years time) and that this year they were told they will be taxed based on today's/time of issue, value.

They were surprised by this,as it seems it wasn't well known and now face another tax bill.
Ill try contact her today and get more information.
Thanks

 

[ClubMan]

Sounds like a Revenue approved share option scheme so. According to the RTSO1 form there were changes to the tax treatment of these last year (highlighting is my own):

Where a person exercises a share option and acquires shares for less than the market value, he/she is liable to income tax on the
difference between the market price of the shares on the date of acquisition and the price paid, i.e. the option price. This also applies
where options were exercised on or after 24 November 2010 under Revenue approved share option schemes. Further information is
available in leaflet CG16, which is available on the Revenue website at www.revenue.ie