Sharesave Scheme - Tax?

[Nick1911]

I save a certain amount of money directly from salary every month and ultimately get to buy shares in company. It is a Revenue approved scheme. I have sold no shares. Do I have to declare these shares to Revenue before I sell? Someone said that a tax liability arises once the shares are allocated to me. Is this correct?

Thanks

Nick

 

[MrEarl]

Hello,

As you state that you have an "approved scheme" you do not need to declare anything to Revenue, assuming you allow the savings to run for the full agreed term (3, 5 or 7 years as specified when you started saving).

There is no income tax payable on the transaction (although dividends are subject to tax).

Capital Gains Tax will be payable on the future sale of the shares, after allowing for your annual CGT Allowance of 1,270 and any capital losses incurred on other transactions.