Calculating Tax Liability on Shares

[bren1916]

Apologies if this has already been asked but I have researched RTSO calculations and my personal tax liabilities but am having trouble working out my liability. My query relates to the following;

1. RSU Shares - my understanding is the tax due on these is withheld by my company so how do I work out any liability if I dispose of these shares? If I do not dispose of any in the financial year then there is no liability, correct?
If I do sell some shares then I am taxed at 52% on the profit ie sold price less original share price)

2. ESPP Shares - I have worked out the taxable amount (share price on date of issue less discount price and multiplied by .52)
If I do not dispose of any in the financial year then there is no liability, correct?
If I do sell some shares then I am taxed at 52% on the profit ie sold price less original share price)

3. If the total liability of the above is say, €2,000 then my liability is €2000-€1270 tax free amount = €730 (x 0.52) €379.60

Thanks in advance for any advice/corrections..

 

[ClubMan]

You're incorrectly mixing up income tax and capital gains tax.
If you search you'll find this stuff explained already.
For example...

Search results for query: Rsu espp

 

[ClubMan]

1. RSU Shares - my understanding is the tax due on these is withheld by my company so how do I work out any liability if I dispose of these shares? If I do not dispose of any in the financial year then there is no liability, correct?

Correct.

If I do sell some shares then I am taxed at 52% on the profit ie sold price less original share price)

No. Any gain is assessable for CGT.

2. ESPP Shares - I have worked out the taxable amount (share price on date of issue less discount price and multiplied by .52)

Correct. Income tax applies here. Check that your employer hasn't already dealt with this via payroll.

If I do not dispose of any in the financial year then there is no liability, correct?

Correct.

If I do sell some shares then I am taxed at 52% on the profit ie sold price less original share price)

See above.

3. If the total liability of the above is say, €2,000 then my liability is €2000-€1270 tax free amount = €730 (x 0.52) €379.60

No. CGT is 33% on any taxable gain after deducting your annual allowance and any previously incurred capital losses if applicable.

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

 

[bren1916]

Thanks ClubMan, so there's the income tax element and then the CGT element in relation to both share types. That's a bit clearer so the CGT only relates to profit made on selling whereas the IT is on the discount received. Now I just need to work out the returns forms..

 

[losttheplot]

RTSO should be paid within 30 days if it hasn't already been done by payroll.

 

[ClubMan]

Thanks ClubMan, so there's the income tax element and then the CGT element in relation to both share types.

In very simple terms and in general, income tax etc. applies to the discount on free or discounted shares while CGT applies when shares the were previously acquired/exercised are sold at a gain with respect to the market value at the time of acquisition.

 

[mitchellwilliam]

If RTSO hasn't been processed through payroll, it should be paid within 30 days.

 

[ClubMan]

If RTSO hasn't been processed through payroll, it should be paid within 30 days.

@losttheplot already said that above!