Tax on Shares

M

megga1

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I have recently been awarded shares by my employer. Shares are deposited with a broker in the US. I will be selling them shortly. How does payment of tax work for this? I am a PAYE worker and have never had to do a seperate return so am really looking for some guidance on this.
Thanks !
 
If they are share options which you receive below the market value you'll need to complete form RTSO1 and pay tax on the gain within 30 days. You'll also need to complete a form12 for that tax year.

I'm not sure what happens if you're simply given the shares. You may also need to complete a form for US tax, but I am open to correction on this.

If you contact revenue they should be able to explain it better.
 
Thanks losttheplot, the shares were completely free so not part of share options. That was why I was unclear. Revenue.ie doesn't have any clear information (that I can find) on the matter. I will try calling them.
 
It sounds like you received these under a Revenue approved share scheme. If so no income tax payable on getting these shares.

Your best option is to ask your HR department regarding the position - the company should have a tax advisor who should be able to clarify the tax position regarding these shares.
 
Megga1,

If these were given to you through a Revenue approved ESOP scheme then you can avail of the tax advantages but you must hold on to them for 3 years before selling. If you sell before the 3 years then you must pay income tax. Capital Gains Tax is payable on share profits which would be the difference between what you paid for them and what you sell them at.

megga1 said:
I have recently been awarded shares by my employer. Shares are deposited with a broker in the US. I will be selling them shortly. How does payment of tax work for this? I am a PAYE worker and have never had to do a seperate return so am really looking for some guidance on this.
Thanks !
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