Income Levy on Share Options?

[fender]

Shares under Approved Share Option Schemes are exempt from income levy. What is an approved Share Option?

I just received a tax bill from the revenue having returned my form 11 for the year 2009. I paid my tax on my share options but it looks like I am now being charged an income levy. Is this correct?

 

[Domo]

An approved share option scheme is one which fulfills certain Revenue conditions. Your HR departments will be able to tell you whether or not the share option scheme you are in is approved or unapproved.

 

[deadlyduck]

If the scheme is an approved share option scheme, you would typically avoid income tax on the exercise of the option but only if you retain the shares for 3 years from date of acquisition- if you sell the shares acquired within 3 years you are charged income tax and you also pay Capital Gains Tax on the profit [calculated as sales proceeds less market value at date of acquisition] you make on the sale of the shares. You wouldn't however, have to pay PRSI/ Health or income levies on the gains (if sold within 3 years).

Gains on exercising unapproved share options are taxable under income tax and are also liable to the income levy.

This might be relevant to the case:
Unapproved share option schemes tax treatment