Tax Relief for buying Shares in your own company?

B

bilco

Registered User
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Hi All,

I work for a company will be floating in the next 12 months.
As my stock options have been vesting, I have been purchasing them.
(Correctly paying my Tax via RTSO1 form on each purchase)

Yesterday, my Dad (who works for Bank of Ireland and was paid Bonus's year on year in shares) mentioned to me that there is a tax relief for purchasing shares in your own company.
I've not found any details of this online.

Does anyone know if this is (still) the case?

Cheers,
Ro
 
Perhaps this is what he was referring to:

The Seed Capital Scheme: Tax Refunds for New Enterprises - IT 15
 
bilco said:
Hi All,

I work for a company will be floating in the next 12 months.
As my stock options have been vesting, I have been purchasing them.
(Correctly paying my Tax via RTSO1 form on each purchase)

Yesterday, my Dad (who works for Bank of Ireland and was paid Bonus's year on year in shares) mentioned to me that there is a tax relief for purchasing shares in your own company.
I've not found any details of this online.

Does anyone know if this is (still) the case?

Cheers,
Ro
Click to expand...

This is from www.revenue.ie...... Guide to Completing 2010 Pay & File Returns. I can't find the 2011 tax year guide on the website (might not be out yet).

Link is here
http://www.revenue.ie/en/tax/it/leaflets/guide-pay-file.pdf

Purchase of New Shares in a Company by an Employee [527]
Employees/directors are eligible for a deduction from total income in respect of the purchase of new ordinary shares issued at full market value by their employer company, (or its holding company where the employer is a 75% subsidiary of the holding company). The investment can be made over a number of years and a total deduction of €6,350 (lifetime limit) from an individual’s total income is given for the year(s) in which the shares were issued.
To qualify for this relief, the employee/director must take up new shares on issue and must hold them for three years. Provision is made for a clawback of relief where eligible shares are disposed of within three years of acquisition or where the employee/director receives any money or money’s worth which is not regarded as income in his/her hands for income tax purposes in respect of the shares.
Hope that helps
 
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