Sale of shares- Do I pay USC tax?

S

suzyann

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Hi I am selling my shares that I bought over 3 years ago, used to be that once you held on to the shares you didnt have to pay any tax on them - Since 2011 there is the new USC - do I pay that?
I know I need to pay CGT - I think my gain is around 1700 so after 1290 allowable exemption I need to pay 25% on 410..
Thanks
 
Sounds like you are part of an approved share ownership scheme with your employer?

If you purchased shares in the past, you got releif from tax, PRSI & levies - at time of purchase of the shares. Now I think you only get tax releif (and not relief from USC or PRSI)
 
Hi boaber,
Yes that's correct - I used my bonus 3 years ago to buy the work shares. So that means that I do pay USC and PRSI?
 
suzyann said:
Hi boaber,
Yes that's correct - I used my bonus 3 years ago to buy the work shares. So that means that I do pay USC and PRSI?
Click to expand...

No, you pay CGT, end of story.

Think of it this way; normally your bonus would be subject to Tax, PRSI & levies, but the approved share scheme meant that you could be given shares of an equal value instead, without any tax arising. (That's the incentive you get, to invest in a risky asset.)

As long as you hold them for the necessary period (usually 3 years) then when you sell them, there is no Income Tax (or PRSI/levy/USC), as they fall to be taxed under CGT rules. USC only arises on Income, not Chargeable Gains.
 
Hi seen this post as I have a similar question. Shares maturing, want to know what the tax implications are? Here's what it says regarding PRSI and USC "From 1st January 2011 a new USC will apply on the exercise of all options granted under an SAYE Scheme." There is conflicting advice on the Revenue website so i'm just wondering does anyone know what is correct.
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