non approved option scheme

[alligator]

I recently found out that the employee option scheme operated by the company I work for in the north is non-revenue approved.

I have been told that because of this I must now pay income tax of 41% on difference between the strike price and the market rate when I choose to exercise my options.

I will then need to pay capital gains tax should the share price rise between the exercise date and when I sell the shares.

The value of my options now fall far short of what I thought they were.

Does anyone know if there is any way for me to mitigate this tax charge?

 

[ClubMan]

I have been told that because of this I must now pay income tax of 41% on difference between the strike price and the market rate when I choose to exercise my options.

You mean 42% presumably?

I will then need to pay capital gains tax should the share price rise between the exercise date and when I sell the shares.

Correct. Income tax on the discount, CGT on any subsequent gain.

Does anyone know if there is any way for me to mitigate this tax charge?

Unfortunately I don't think that there is any to mitigate the income tax charge. You can reduce the CGT bill by offsetting previously incurred capital losses, only realising a gain of €1,270 p.a. etc.

Note that the income tax is normally due within 30 days of exercise:

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