Revenue has updated two guidance documents on share schemes, dealing with restricted shares and unapproved share options providing several clarifications on each of the schemes. The updated manuals also contain useful changes to the layout of certain information as well as helpful guidance on completing the Form RSS1.
Paragraph 8.2 of the guidance on restricted shares has been revised to clarify that the conditions attached to restricted shares apply both at the time of acquisition and throughout the entire specified period. The updated guidance confirms that Revenue approval is required for restricted shares held in any arrangement other than a trust. The guidance also confirms that a disposal or transfer before the end of the specified period and in circumstances not covered by section 128D(3) TCA 1997, may result in the shares no longer being restricted for the purposes of section 128D TCA 1997. Certain presentation changes were also made to the guide.
The guidance on unapproved share options has been updated to confirm that the employer is responsible for remitting the tax due at the date of grant of a long option, and to outline the process for providing a payroll credit upon exercise of the long option for any income tax paid at the date of grant.
The guidance also clarifies the amount of the gain to be included on the Form RSS1 where an individual is taxable in Ireland on a portion of the share option gain under a double tax agreement. References to indexation on disposal of shares acquired pre-2003 has been removed from the guidance.
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