Company Share ownership plan - what tax am I liable

[Tea drinker]

Hi,
I am part of the HP SOP, which I believe is a revenue approved one.
I have been buying shares for a few years and have sold them around June.
As the shares were only sold in June is this the date that the shares were "excercised" or is that when they were purchased?

From what I gather I owe normal rate of tax on the difference between purchase price and FMV, but from when is that due, purchase date or sell date? Also I am liable for CGT on any gains....

Thanks for any help.

 

[ClubMan]

Hi,
I am part of the HP SOP, which I believe is a revenue approved one.

Does the company/scheme handbook not outline the tax treatment of the scheme? Revenue approved schemes may have options for tax deferrals etc. but that may only be if you hold the shares for a certain minimum period or something like that?

As the shares were only sold in June is this the date that the shares were "excercised" or is that when they were purchased?

The exercise date is the date on which you acquired them.

From what I gather I owe normal rate of tax on the difference between purchase price and FMV, but from when is that due, purchase date or sell date?

Income tax is normally due on the difference between the market price and the discounted acquisition/exercise price on the day of acquisition and is normally payable within 30 days via a [broken link removed]. Revenue approved schemes may be different - I'm not familiar with them.

Also I am liable for CGT on any gains....

Yes.

 

[Tea drinker]

Does the company/scheme handbook not outline the tax treatment of the scheme? Revenue approved schemes may have options for tax deferrals etc. but that may only be if you hold the shares for a certain minimum period or something like that?

Thanks Clubman,
there is no handbook I am aware of and the web links don't work to local coordinator, HR have no idea and refer to the Revenue site.

The scheme is ok, 85% FMV but there is no one to ask questions... I tried HR but they directed me to revenue website. (!)

 

[ClubMan]

Your company stock plan administrator should be able to give you some information about the implications of the scheme being Revenue approved (if that is actually the case?). However I suspect that tax deferrals etc. under such a scheme only relate to situations in which the shares are held for a number of yeas etc. In this case I believe that my outline is more or less correct. However if you cannot get more authoritative confirmation then you may need to get professional tax advice.