Revenue eBrief No. 061/24

05 March 2024

Finance Bill (No. 2) 2023 Changes to Rights to Acquire Shares or Other Assets

Tax and Duty Manual Chapter 3 - Unapproved Share Options has been updated to reflect the Finance Act 2023 changes.

Broadly, the Finance Act changes amends the method of collection of Income Tax and the Universal Social Charge in respect of any income gains realised from the exercise, assignment or the release of a right, including but not limited to share options, that are chargeable to tax by virtue of section 128 TCA 1997.

As a result, the employer is responsible to account for the tax through payroll in respect of all options exercised on or after 1 January 2024. A consequential amendment was made to the Social Welfare Act with regard to the collection of PRSI by employers.