Filing your tax return
You may have acquired shares at less than their market value under an Unapproved Share Option Scheme. If so, you are due to pay Income Tax on your income gain arising. The income gain is the difference between the market value on the exercise date and the price you paid, if any, to acquire the shares.
Gains on share options realised prior to 1 January 2024
To pay your Income Tax on share options exercised before 1 January 2024, you need to complete and return your Income Tax Return (Form 11). You need to do this by 31 October in the tax year immediately after you receive the share income.
Your tax return must contain details of all taxable income, including share option gains for the particular tax year, and any payments for:
- Relevant Tax on a Share Option (RTSO)
- Universal Social Charge (USC)
- Pay Related Social Insurance (PRSI).
Any payments made will be set against your total Income Tax, USC and PRSI liability for the particular tax year.
You will have an obligation to file an Income Tax Return by 31 October 2024 if you realised a gain during 2023.
Gains on share options realised on or after 1 January 2024
You may realise a gain by exercising, assigning or releasing a share option. If you do so on or after 1 January 2024, your employer will account for Income Tax, USC and PRSI through payroll. You will not be required to file an Income Tax Return regarding this event.
You can find further information on the Unapproved share option page.