Capital gain on share sale

T

tmurphy1

Registered User
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Hi,
I recently recieved shares from my company through a share purchase scheme. They were purchased at 15% less than market value and I was wanting to find out what is the tax implications for selling them. As I understand I only pay tax on the profit but at what rate is it 20% or 40%? Does it depend on your earnings?
Many thanks.
Thomas
 
Unless it is a Revenue approved scheme that allows for some tax deferrals (your employer should be able to tell you) then you are liable for income tax at your marginal rate (20% or 41%) on the nominal gain attributable to the discounted price (i.e. the difference between the market value at the time of exercising the options and the discounted price). This is payable within 30 days via an [broken link removed]. After than if you hold onto them and sell for a gain with respect to the market value at the time of acquisition then CGT at 20% applies on the gain less any allowable expenses and exemptions.
 
ClubMan said:
Unless it is a Revenue approved scheme that allows for some tax deferrals (your employer should be able to tell you) then you are liable for income tax at your marginal rate (20% or 41%) on the nominal gain attributable to the discounted price (i.e. the difference between the market value at the time of exercising the options and the discounted price). This is payable within 30 days via an [broken link removed]. After than if you hold onto them and sell for a gain with respect to the market value at the time of acquisition then CGT at 20% applies on the gain less any allowable expenses and exemptions.
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If he doesnt hold onto the shares and sells them straight away. Would there be no capital Gains tax? Would the only tax be the 41% of difference between the market value at the time of exercising the options and the discounted price?
 
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