Taxation on Share Options

[kennydie]

I am a bit ignoraqnt on this Issue, but If you avail of Share Options, why are the Revenue Taxing me at 42% and also refusing to allow £1000 threshold limit.
I had availed of 7500 share options with Golden Vale when Kerry PLc took over and have now been hit for a bill of €1500.

I had calculated my CGT at 20% less £1000 (€1276) threshold, approx €500 of a bill.

Of course the money is spent and I am arguing with the revenue. I have no other shares/ or options

 

[Guest]

Share options are taxed as follows:

(1) income tax on the difference between the market price on the day of exercise and the (usually discounted) option exercise price.

(2) Capital Gains Tax on the difference between the eventual disposal price and the market price on the day that the options were exercised/shares acquired.

If you exercise and sell on the same day then any gain is subject to income tax and CGT doesn't come into it.

Perhaps this explains your situation?