Yes. The rules changed after 2024.
Pre-2024 Taxation:
– Income Tax on share option exercise was under self-assessment
– Employees were responsible for filing tax returns
– Employer did not deduct tax through payroll
Post-2024 Taxation:
– Employer now responsible for deducting Income Tax through PAYE
– Employees no longer need to file a specific Income Tax Return for share option exercises
From 1 January 2024, share option gains are subject to PAYE and the Employer must:
– Calculate the taxable gain (taxable gain = market value of shares at exercise – option price)
– Deduct appropriate Income Tax
– Include in regular payroll reporting
