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Willow0311(Newbie)Newbie
23 Sept 2024

If shares from an Employee share scheme were issued in Aug 21, then vested in Aug 23 and subspequently sold in April 24, can someone confirm the cgt treatment please. My understanding is I will pay the marginal rate through the deferred tax employee benefit scheme and then the cost base is the value they vested at. One question I have though, is ownership only considered to apply from the vesting date and therefore 100% of the capital gain will be taxable?


In addition to this, there were some employee shares issued under the upfront tax method. From this, I would assume, they are the quantity and value specified in the lodgement provided of that year?

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3 replies
1,924 views
3 replies

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Deb_ATO(Community Support)Community Support
25 Sept 2024

Hi @Willow0311


Yep. Generally, the ownership will apply form the vesting date.


Yep, that's also correct.

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Most helpful reply

Deb_ATO(Community Support)Community Support
25 Sept 2024

Hi @Willow0311


Yep. Generally, the ownership will apply form the vesting date.


Yep, that's also correct.

joandlinksmum(Initiate)Initiate
4 June 2025

Hi Deb, in a similar scenario, if share options (unlisted company) were issued in 2014 at the prevailing price of $4, and exercised in October 2024, at $4, then sold 2 months later for $40 in an unexpected takeover, would I only be taxed on the gain ($36 per share) or will I be somehow liable for more tax because of the difference between the purchase and sale price?

Also, these are shares in the parent company of the company I work for, but there is no formal ESS in place and no reports are made to the ATO by my employer in terms of an ESS. @Deb-ato

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Capital Gains implications of Employee Share schemes | ATO Community