Stock Options and Pension Contributions

[fitzie79]

Hi,

I recently sold some stock options (work for an American company so stock sold in the States). I am intending to use this money to put a lump sum into my pension. My understanding is that I have to pay tax at 41% on the profit from the stock options but also that I can tax refunds on lump sum contributions to my pension scheme (up to a certain threshold base on my age).

Is there any method to offset the pension contribution against the stock option profit or do I have to pay the money to revenue for the stock options and then later on claim back the money from the pension contributions? This would be easier (financially) than having to find the money that I would be able to claim back from the revenue.

 

[Domo]

Depending on the type of stock option and gain, this may be liable to Irish tax within 30 days of exercise.
Tax relief for pension - what year you paying it in, and are you carrying it back to last year? If so, the refund will be dealt with for 2009.

If you don't pay the tax on the share options on time you may be charged interest on late payment of tax.