Calculating Tax Liability on Shares

B

bren1916

Registered User
Messages
381
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..
 
bren1916 said:
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?
Click to expand...
Correct.
bren1916 said:
If I do sell some shares then I am taxed at 52% on the profit ie sold price less original share price)
Click to expand...
No. Any gain is assessable for CGT.
bren1916 said:
2. ESPP Shares - I have worked out the taxable amount (share price on date of issue less discount price and multiplied by .52)
Click to expand...
Correct. Income tax applies here. Check that your employer hasn't already dealt with this via payroll.
bren1916 said:
If I do not dispose of any in the financial year then there is no liability, correct?
Click to expand...
Correct.
bren1916 said:
If I do sell some shares then I am taxed at 52% on the profit ie sold price less original share price)
Click to expand...
See above.
bren1916 said:
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
Click to expand...
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
 
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..
 
bren1916 said:
Thanks ClubMan, so there's the income tax element and then the CGT element in relation to both share types.
Click to expand...
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.
 
You must log in or register to reply here.
Menu
Log in
Register