I might ask a quick question of ye as there are some pretty wise heads floating in this forum.
A buddy of mine wants to flog his shares he received from work but has only held them for 15 months, he has unforeseen financial commitments at the moment that means he can’t wait out the three years to be tax compliant. He contacted Mercer, who they are held with and they said he can’t access the shares till 2 years after the issue date even if he is willing to settle the tax implications himself. They were very nice and all, but said the only way he could get them early would be if he died. He hopes not to take to take that route.
Anyone any experience of this.
Of death? Yes, my dog died last year
Sounds like a Revenue Approved Share Option Scheme. In English, that means there are some tax benefits to your mate if he sticks with the program. If he is able to cash in his chips, which he should be, he will be liable for CGT at the current market value.
The Revenue are very good at giving advise on this type of thing - and will do it over the phone.
There must be a document outling the rules of the scheme - usually posted in the annual return. Typically options are exercisable at a certain date. He needs to get the share option scheme document and talk to the Revenue, and his accountant/solicitor. Below are the Revenue’s relevant documents: