RTSO on Share Options and Pension contribs

[thos]

Hi all,
I've recently exercised some share options and intend to pay the tax as per the [broken link removed], which covers the Income Tax, PRSI and USC payable on the gain. The tax is due within 30days of the transaction.
I would like to make a pre-tax contribution to my pension in order to take advantage of the remaining threshold I have available.

Am I right in my thinking here:
So PRSI & USC will be calculated on total gain. No getting away from this.
But, PAYE will be calculated on total gain less pension contribution (on the basis that it is still within my allowable threshold ie; 20% for age 30-39, capped at €115k earnings).

2nd part of question - is it correct that I can make a contribution to my pension across 2 tax yrs ie; 2017 and 2018?

3rd part - as a married couple, can I also make contribution under my spouse's threshold also?

Ultimately, I'm trying to establish whether I can take the pre-tax gains on this transaction, and make use of 2 peoples thresholds over 2 years.

Thanks in advance.

Tom

 

[dublin67]

In response to your questions yes, yes and yes.

You will need to pay your RTSO and then make a claim for a pension contribution either through your employer's payroll or on a Form 11. The second "yes" is that you can make a pension contribution for 2017 up to the tax return filing date (31st October or slightly after that for electronic filers) - I would imagine that you would need to make a claim on this on your tax return rather than getting relief through an employer's payroll deduction.

The third "yes" is that pension contributions are stand along calculations for spouses and your spouse would need employment/case I income in their own right.

 

[thos]

Forgot to say thanks for this, very helpful!