I move Financial Resolution No. 8:
(1) THAT section 10 of, and the Second Schedule to, the Finance Act, 1986 (No. 13 of 1986), shall not apply or have effect in respect of a right (within the meaning of the said section 10) to acquire shares in a body corporate obtained on or after the 29th day of January, 1992.
(2) IT is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).
The purpose of this financial resolution is to abolish the concessionary tax treatment available in respect of share options granted under approved share option schemes.
As the House will be aware, share options are rights to acquire shares in a company, and are often given to directors and employees of a company as part of their remuneration package. A concessionary tax regime applies to share options granted under approved share option schemes, which were provided for in the Finance Act, 1986. Briefly, this provides that there is no income tax charge and that capital gains tax applies instead.
This resolution abolishes the concessionary tax regime in respect of share options granted on or after today. Share options granted before today are not affected.