Tax on company shares

D

Deub41

Registered User
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Hi all,
In the last few years, I have received shares from my company. They are mine after a waiting period. Once they are vested I pay USC, PRSI, etc.
I have now sold some of them. I selected to sell the latest one. I have the gain made on each share sold from the broker report.
I see on the Revenue website that they talk about FIFO for shares. Does it apply in my case?
Thanks
 
How many tranches/batches of shares did you receive? Over what time frame? Did the share price change in the time you sold the first versus the last?

What revenue are trying to ensure that you are selling the 'oldest' shares each time you are selling - this is on the basis that the older shares are likely to have the most gain, and therefore the higher tax bill, and to avoid people only sharing the 'latest' vested shares, which may have negligible gain.
 
Thanks !
I receive 2 batches every year for the last 10 years. Yes the price increased so the first share I received had a lower price than currently when I vested them.
I don't know if it changes anything but my company changed broker few years ago. So I have now shares in both brokers and sold shares from the current broker.
 
So yes FIFO should apply on shares where you have a gain.
Change of broker has no bearing.
If it's like previous scheme's I've seen you may have been selling shares on the vesting date to cover USC/PRSI/Income tax aka 'Sell to cover', there shouldn't be any problem there.
If you held shares, and they have gained in value, then from Revenue's perspective when you go to sell, they will be assuming you're selling the oldest shares first, and it's on that basis you should be calculating your CGT liability. (If you've done so between Jan-Nov this year, then the deadline is 15th December to declare and pay the CGT)
 
Thanks for your help. It is really helpful. I am in contact with Revenue to pay the CGT.
 
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