Selling shares from employee shares scheme

[jj1221]

Hi,

I have invested various bonuses and some salary foregone in an employees shares scheme over past few years. A large portion of these have matured (> 3 years).

I am currently in the process of waiting to move into a new build house and plan to use a large amount of the money available from these shares to fund house extra costs (Furniture, etc).

Due to move into house around Mar/Apr time frame next year.

Is there a 'best' time to sell these shares for maximum benefit or should it be fine to just wait until right before I need them next year?

(They are performing quite well at moment). Any advice appreciated.

Kind regards,
Conor

 

[ClubMan]

Is there a 'best' time to sell these shares for maximum benefit

Nobody can answer that as nobody can tell the future.
Having shares in the company that also pays your salary is a concentration of risk.
That's why, when I was in such schemes, I always sold such shares at the first opportunity.

 

[losttheplot]

Selling them as they mature can also make sure you use the CGT allowance each year if you haven't used it elsewhere.

 

[jj1221]

Thanks for that. I was thinking along those CGT lines. Should I be selling a certain amount this year and then another amount next year to maximise CGT allowance?

 

[ClubMan]

Thanks for that. I was thinking along those CGT lines. Should I be selling a certain amount this year and then another amount next year to maximise CGT allowance?

Your CGT allowance is €1,270 p.a.
You can also offset previous capital losses that were filed if applicable.
If you're married you could also transfer shares to your spouse so that they can also avail of their personal annual CGT allowance.
Be aware of the rules and timing for CGT payment and filing.

Capital Gains Tax (CGT) on the sale, gift or exchange of an asset

This page explains what Capital Gains Tax (CGT) is and the CGT rate that applies

www.revenue.ie

If in any doubt get professional advice.

 

[delta_bravo]

Firstly I would check if you can actually sell all year round. If you're still an employee you may be forced to follow forced blackout windows where you can only buy or sell you company shares at dedicated time periods