Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Employee pensions schemes

Options
  • 14-06-2006 9:47pm
    #1
    Cantab.
    Closed Accounts Posts: 1,444 ✭✭✭


    Hi all,

    I work for a technology company and there is a 1+1 share offer on at the mo (i.e. for every share I buy today, I'll get a 'free' one in 3 years time).

    The money would be automatically deducted automatically from my pay slip.

    Anyone know anything about the tax implications of this? Is the base currency of the shares important? Can I write off any profits against tax?

    Any advice/comments greatly received.


Comments

  • Options
    #2
    jhegarty
    Registered Users Posts: 6,440 ✭✭✭jhegarty


    Cantab. wrote:
    Hi all,

    I work for a technology company and there is a 1+1 share offer on at the mo (i.e. for every share I buy today, I'll get a 'free' one in 3 years time).

    The money would be automatically deducted automatically from my pay slip.

    Anyone know anything about the tax implications of this? Is the base currency of the shares important? Can I write off any profits against tax?

    Any advice/comments greatly received.


    i persume its the same as share options ... paye on profit (value when you get them - what you payed ) when you get shares....


  • Options
    #3
    Hitchhiker's Guide to...
    Registered Users Posts: 3,322 ✭✭✭Hitchhiker's Guide to...


    as jhegarty said.

    more specifically; the free shares are essentially counted as extra pay and will be taxed at the marginal rate of income tax.

    have at look at this PDF from the revenue.ie website:

    http://www.revenue.ie/leaflets/rtsoa.pdf

    which should fill in the picture

    BTW: I don't think this tax treatment is fully fair, as it seems you will be charged marginal rate of tax on the free shares you get in three years time, irrespective of the gain or loss you make on the shares you buy right now.

    I'd suggest that you ring the Revenue Commissioners and ask them for specific information.

    Regarding your question about currency: i'm not sure, but can't imagine that it would matter

    Regarding your point about writing off profits against tax: your purchase of shares now is at market price, so any profit or loss on these shares will counted towards your Capital Gains Tax Allowance in the year. Not sure what happens about your shares that you get in three years time.

    Hope this has been of help, and remember to call the Revenue Commissioners for more specific information. And, if you want any clarification of these points, just post your queries here.

    P.S. its a great offer, and you should almost always take it up, unless you have specific information that the company is going to go bust, or dramatically fall in share price, over the next three years.


Advertisement