Contractor83
New Member
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- 2
Hi all,
I’m self-employed in Ireland through an Irish limited company. My sole client, and former employer, is UK-based.
They are likely to offer me another round of equity units in the company, structured as sweet equity. The intention is that I buy the units at fair market value, with value crystallising if the company is sold.
Under prior programmes, these units were been held by me personally. The sweet equity structure meant CGT only as opposed to income tax. But as I’m now contracting through a limited company, I’m unclear whether they should still be held personally or instead via the limited company.
My concern with company ownership is potential double taxation: tax on the proceeds flowing into the company (presumably CGT), then further tax when extracting the cash personally (i.e. income tax when I pay out additional cash that I can't funnel into my pension).
On the other hand, I’m unsure whether personal ownership would create an issue with Revenue, given the units are being granted in connection with work for what is now my client.
I’ll get formal advice before doing anything, but I’m trying to educate myself first so I have some context. Interested to hear any views/thoughts/specualtion.
Thanks in advance.
I’m self-employed in Ireland through an Irish limited company. My sole client, and former employer, is UK-based.
They are likely to offer me another round of equity units in the company, structured as sweet equity. The intention is that I buy the units at fair market value, with value crystallising if the company is sold.
Under prior programmes, these units were been held by me personally. The sweet equity structure meant CGT only as opposed to income tax. But as I’m now contracting through a limited company, I’m unclear whether they should still be held personally or instead via the limited company.
My concern with company ownership is potential double taxation: tax on the proceeds flowing into the company (presumably CGT), then further tax when extracting the cash personally (i.e. income tax when I pay out additional cash that I can't funnel into my pension).
On the other hand, I’m unsure whether personal ownership would create an issue with Revenue, given the units are being granted in connection with work for what is now my client.
I’ll get formal advice before doing anything, but I’m trying to educate myself first so I have some context. Interested to hear any views/thoughts/specualtion.
Thanks in advance.
