Tax on staff shares

I have a small parcel of bank shares that were given to me many moons ago as part of employment. I've done nothing with them and don't even think about them.

Does anyone know how it is treated for tax purposes? Should these have been reported as a fringe benefit?? I have had them for about 10 years. If I was to sell them how is CGT calculated as I paid nothing for them.
 
From the information supplied, noteably you worked for a bank I would assume these shares to be Exempt shares. That is the value of the shares at the time they were granted to you was less trhan $1,000. Under ATO rules they would have been held under a staff scheme until either you left the employment or a period of 3 years had elapsed, which ever occurred first.

Also at the end of the financail year in which you received those shares you/ your accountant should have completed a tax declaration in relation to those shares.

For CGT purposes the cost base of the shares is the unit price of the shares when you received them.

You should have received documentation from your employer outlining all of this. If this documentation has been lost then you will need to do the following.

You will need to find out if they have been converted from Employee shares to Ordinary held shares. The reason for this is if you try to sell them and they are still listed as Employee shares it could cost you money. Have a look on your last dividend statement or contact your previous employer. You may need to contact the employer in any event to determine the price of the shares when they were granted to you.

Once this price has been determined the CGT calcilation is simple:

Current Market value = Number of Shares by Current Share Price

Less

Cost Base = Number of Shares by Issue Price

Multiply the difference by 50%. This figure is then added to your assessable income and taxed at your marginal rates.

Good Luck.
 
Wow thanks.

They have been transferred because I have most paper work for share movements, prices and div payments - just not about the scheme.

Can't even remember whether declarations were done at the time. I think i was doing my own tax return at the time so I doubt it!

Thanks again
EP
 
Top