Capital Gains Tax on Shares

islanderre · 19-10-2023 2:59pm #1

Hello,

Through a company scheme; I have been buying shares since approx. 2010.

I've never sold a share since I began buying them.

I'm now at a stage where the selling of these shares may be a good way to offset some of the outstanding Mortgage.

I know I'd have to pay Capital Gains Tax on the sale of these.

What would people recommend regarding the sale of the shares?

Simply sell and declare to Revenue and pay the CGT via 'MyAccount' on revenue online

or pay the services of an accountant who may have more tax advantageous ways to dispose of the shares.

Would appreciate any advice.

Thanks,

Paul

Atlantic Dawn · 19-10-2023 3:12pm

Do you know if it was a Revenue approved SAYE scheme you were purchasing them from? Worth looking in to if it was as taxation may be more favourable than simple buying shares and selling them.

On shares each year you have an exemption of €1270 profit which you will pay no tax from, if you want to sell them all ASAP it would be worth looking at selling a portion now in 2023 and another in early 2024 so you would be able to offset the first €2540 in profit.

You should be able to calculate and pay yourself via Revenue online without the need for an accountant. That said if we are talking of tens of thousands worth perhaps they may have advise on how to be even more tax efficient.

Info on SAYE

https://www.revenue.ie/en/employing-people/share-schemes/employees/saye.aspx

islanderre · 19-10-2023 4:59pm

Thanks for that Atlantic Dawn...

I'll look into the SAYE....

I doubt that is the scheme we are in.... I never heard that term been used here over the years.

barrauda17 · 08-11-2023 8:41pm

One query I have on the back of your original question is -is the 1270 amount that people can earn each year without having to pay capital gains totally seperate to other taxes?

relax carry on · 08-11-2023 10:48pm

https://www.boards.ie/discussion/comment/121343578#Comment_121343578

The annual personal exemption of €1270 on capital gains is for capital gains only. It has nothing to do with other taxes.

https://www.revenue.ie/en/gains-gifts-and-inheritance/transfering-an-asset/what-is-exempt-from-cgt.aspx

Pawwed Rig · 08-11-2023 11:01pm

I have seen a good few people burnt badly on those company schemes. It is something I have done a good bit of work on and some of them can be bloody dangerous.

If I was the tax advisor you came to I would be looking at the terms of the scheme to ensure all the tax was done correctly in the first instance. You will then look at the various purchase prices. You may also need to deal with FX movements.

I once had a client who sent me share info saying he made a 10k loss but after adjusting for FX he actually had a capital gain with tax of 8K. He fairly tried to shoot the messenger that year 🤣

Once you have the schedule of purchase prices you look exemptions, gifts to spouses, and then an estimate of tax charges. As above at this time of year you would be looking to go either side of new year to maximise exemptions although that is largely irrelevant if you are talking hundreds of thousands.

A tax advisors fee would be deductible before the CGT rate is applied so will only actually cost you 67% of what they quote you. Just bear in mind if things haven't been done correctly to date they might be giving you bad news.

I had another client that bankrupted himself by not understanding stock options.