Any Tax guru's here?

Altezza-Dan

Altezza-Dan

Octane Boostaholics
So i recently sold some Restricted stock units i was given by the job when i first started. I thought the tax would be deducted automatically and i would only receive the balance owed. Turns out i need to pay tax on this separately to the usual PAYE.

I was given the units for free and there value was $0. when i went to sell them they were 260.

Do i pay capital gains tax on these?
(amount received - capital gains tax exemption(1271 euro) taxed @ 20%

or Relevant tax on share option?
total amount of gain @ 41%
Or something totally different?

never sold any stock units before so im not sure how this game works!
 
I get stock like that in my job Dan.

The story with restricted stock - they have to be held for 3 years before converting to ordinary shares. If you keep them for 3 years you are then only liable for CGT on sale price minus purchase price (which would be the full 260 coz you got them free.

If you sold them during the 3 yr period you are liable for paye on the full amount, so yeah as far as I know you're gonna be stung to pay 41% on the total sale price of the stock.

99% sure I'm right in what I'm saying there, but maybe someone else is a tax expert & can clarify.
 
[quote author=ckay link=topic=10680.msg127089#msg127089 date=1226065076]
For that amount I wouldn't bother with the TAX.
[/quote]
you wouldnt bother paying the tax on 3 grand of shares sold?
 
[quote author=Dagnut link=topic=10680.msg127085#msg127085 date=1226064537]
You only need to pay capital gains on anything over 50k i finks
[/quote]

No you pay capital gains on anything above 1270e
 
[quote author=Dagnut link=topic=10680.msg127085#msg127085 date=1226064537]
You only need to pay capital gains on anything over 50k i finks
[/quote]

think that is for capital acquisitions tax (CAT)
 
Hi Dan,

The situation with that is that when you sell them you will take the selling price minus the cost price and you get your profit on them and this is what you need to pay your Capital Gains Tax on. As you said you got them for nothing and you got a profit on them of 260.00 euro. So the CGT-Capital Gains Tax is currently at 20%. But every individual gets an annual exemption of 1270.00 euro. So there is no liability to be paid by yourself. If you made a profit on them of 2270.00 euro then you would take off the 1270.00 annual exemption which would leave you with capital gain of 1000.00 euro and then you would pay CGT of 20% which would leave you with a CGT bill of 200.00 euro.

But as i said you have no CGT liability but revenue still does require that you make a manual return just to state that you did sell some stock or shares. If you sold them by 30th of September 2008 then the return should be made by 31/10/08 but if you sold them between 1/10/08 and now then they require you to make the return by 31/1/09. So just want you to specify that you sold shares and that your liability is nil with them.

Hope that helps.
 
Just in case you think that was me that posted that you would be wrong :lol:
It was the wife :thumbsup:
 
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