Purchasing shares in work company - Tax implications

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?

I need to do a little more research - maybe there is no tax benefit from this

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