A share option is the right to buy a certain number of shares at a fixed price, sometime in the future, within a company. These shares offer your employer a way to reward you in addition to your basic pay. The value of the reward is the market value of the shares at the date they were awarded.
Prior to 1 January 2024
Any Income Tax due on the exercise, assignment or release of the option prior to 1 January 2024, is chargeable under self-assessment. Your employer will not deduct tax on your behalf through payroll.
After 1 January 2024
You will not be a chargeable person if you exercise, assign or release an option on or after 1 January 2024. Any Income Tax due will be deducted by your employer through payroll. You will not have to file an Income Tax Return regarding this event.
You can find further information on shares and your tax obligations in the Additional incomes section.