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
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