Shares sold,do I need to pay tax?

T

Treefrog2108

Registered User
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Hi.
I have recently had to sell shares I owned with a company I used to work for, but which made me redundant.

I recieved a cheque for 3000.

My question is, do I have to pay tax on this and how much>?
thanks .
 
ok thanks for the answers.

As for how much I bought them for i have no idea,there were bought automaticly while I worked in the company, a certain amount each year I believe deducted from my wages. I never really followed how much they were being bought for. I was using them as savings so its easier for me to save if I forget that theres a lumpsum somewhere waiting to be spent.

i kept them for three years and sold when that time was up as I left the company.

Its the reason I didnt contact revenue, I assume they would ask the same,How much I bought them for and when. I never tracked any of that.

Hopefully 44 brendan is right.

I wonder if I owe something, Im going on the assumption now Im within the threshhold, but If Im not and they contact me, will I be in deep dodo,? or can I just say oh I owe 100 euros,sure here, and then thats the end of it. Or will they do an all copane on me.
 
You are allowed an annual gain of €1270 tax free before any tax. Then you are taxed on the gain at 25%. Even if you got the shares for nothing, you still wouldn't owe much tax on them. It would be around €430
 
You need to ascertain the cost price of the shares , you should then apply the indexation factor - that figure less your threshold is the amount taxable.
 
Indexation won't apply as OP has said they only owned the shares for 3 years.

If the proceeds were 3k and the annual exemption is 1,270 then the OP would have had to pay less than 1,730 for the shares. In other words the shares would have had to increase in value by about 73% in the period of ownership.

Now I don't follow the stock markets, but can anyone name a company in Ireland, which has made staff redundant in the last year or so, but whose share price at the time was >73% higher than it was 3 years previously... if not then I think this thread should be about advising the OP about capital losses... ;)
 
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