Share Advice

[Davidium]

Hi Guys,

First off I know very little of share so some patience would be appreciated. Let me try to explain my current situation. I work for a blue chip IT company and have bought shares (approx 2K) via an employee discount share plan and the company also offers share purchases as part of a pre-tax bonus payout which I have opted for (approx 2K). Now while I am with the company all of the shares are handled by the company but when I leave I must transfer the shares to a "nominee account" in order to retain them. So just three questions

1) Can someone recommend a broker/company (that I can setup a nominee account with and transfer the shares to when I leave) that does not charge a monthly/anual account fee (I plan on holding onto these shares for a while) and also charges low commission.

2) My understanding of a "nominee account" is that the shares are held by someone else in my name but I have none of the benefits of the shareholder such as voting rights and divendends. Is this correct and if so is there way around having to use a "nominee account" or does this ultimate depend on the scheme/contract Ive entered into.

3) What are the tax implications (generally) for holding/trading the shares outside of Ireland? Do I just need to declare any and all tax to be compliant?

Im sorry if some of the above is confusing so if you need clarification on any of the above questions or the scenario please do not hesitate to ask.

Regards,

Dave

 

[ClubMan]

have bought shares (approx 2K) via an employee discount share plan

Bear in mind that even if you hold these shares and sell them later you probably have an income tax liability on the discount which needs to be paid immediately (unless it is a Revenue approved scheme with tax deferrals).

[broken link removed]

1) Can someone recommend a broker/company (that I can setup a nominee account with and transfer the shares to when I leave) that does not charge a monthly/anual account fee (I plan on holding onto these shares for a while) and also charges low commission.

Any use?

The Cheapest Irish Stockbroker
The cheapest non-Irish stockbroker

(There are also other existing threads on this topic).

2) My understanding of a "nominee account" is that the shares are held by someone else in my name but I have none of the benefits of the shareholder such as voting rights and divendends. Is this correct and if so is there way around having to use a "nominee account" or does this ultimate depend on the scheme/contract Ive entered into.

I didn't think that you should lose voting rights and dividends by having a nominee account although you may have to hassle your broker for this information/payment. Any use?

Share certs/Crest Account/Nominee Account?

3) What are the tax implications (generally) for holding/trading the shares outside of Ireland? Do I just need to declare any and all tax to be compliant?

You probably have an income tax liability on the discount applied when acquiring the shares. Then when you dispose of the shares any gain will be assessable for CGT. Holding foreign shares is no different other than when factoring in foreign exchange currency conversions.

Im sorry if some of the above is confusing so if you need clarification on any of the above questions or the scenario please do not hesitate to ask.

If in doubt get independent, professional advice on the investment and tax issues arising.

 

[Davidium]

Hey ClubMan,

Cheers for the feedback it was very useful. I was just wondering if you could personally recommend a broker?

I had a look at the links you have sent me and only two of the brokers was there an account maintenance fee outlined. This for me is the most important as it will be the biggest overhead for the next 5 years. The commission would be important but the value of the shares isnt big enough for it to have a massive influence.

Have you ever used online share dealing with AIB? I think they do it via GoodBodys - no?

Dave

 

[Davidium]

Hi Guys,

Ive googled this and cant find anything concrete. Is a brokerage account just another name for a nominee account?

Regards,

Dave