Purchasing shares in work company - Tax implications

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shaneo

Registered User
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Hi

I have been given the opportunity to purchase 15k worth of shares in the small profitable company in which I work.

As a normal PAYE worker, is there a tax benefit for me to be gained by doing this.

Thanks
 
What percentage of the company does the shareholding represent? You need 15% to be considered a proprietary director, which would allow you certain tax advantages, especially in the pensions area.

Be aware that owning a small percentage of a company's shares does not entitle you to a corresponding percentage of company profits!
 
I don't know the specifics of your situation, but just thought I'd point out the risks of investing in the company you work for - what happens if the company or the industry goes through a downturn? How much of your total investment portfolio does this 15k represent and could you afford to lose the 15k and your job at the same time?
 
There is an employees share ownership programe/scheme (ESOP) - in which if you purchase the shares and hold for 3 years, after the 3 years you don't have to pay income tax - just CGT when cashing in.

Unfortunately I have no idea how or when this applies - but it might be worthwhile checking out.

Paddy
 
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