Capital gains tax on selling shares

D

devil

Guest
I have some company shares in the company I work for.
I will sell some of these in 2008, do I have to pay capital gains tax, if so is there a limit, below which no tax would be payable, I seem to remember that if the capital gain was no more than say 1000 euro in any one year, then no tax would be payable.
I am not sure if the sale of these shares will go through payroll and tax be deducted there, of if I have to declare the gain.

Can anyone help on this one.


Many thanks
 
There is an annual exemption of €1,270, i.e. the first €1,270 of gains in a year are exempt from tax.

CGT is a normally a self-assessment tax, so as far as I know you will be liable to pay the tax and make returns, however this may not be the case under a Revenue approved profit sharing scheme-I'm not sure on that point.

Did you get these shares under a Revenue approved profit sharing scheme or otherwise?
 
Apart from CGT on selling the shares at a profit over the market value on the date on which you acquired them you could also be liable for income tax if the shares were free or discounted.
 
Thanks to you both.
No these shares were not under a revenue approved scheme.

Good point Clubman, for every 3 shares purchased by me, the company provided one free, interesting to see the income tax liability. ?
 
You are liable for income tax at your marginal rate (20% or 41%) on the full market value of the free shares on the date that you acquired them. Any gain that you eventually realise above that market value is assessable for CGT. Such income tax on free/discounted shares is normally payable within 30 days of acquiring the free shares via an RTSO1 form.

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