Finance Act, 1986
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Profit sharing schemes. |
11.— Section 52 of the Finance Act, 1982 , is hereby amended, as respects the year 1986-87 and subsequent years of assessment, by the substitution of the following subsections for subsections (7) and (8): | |
“(7) In this Chapter ‘the release date’, in relation to any of a participant's shares, means the fifth anniversary of the date on which the shares were appropriated to him. | ||
(8) Subject to section 56 (4), for the purposes of provisions of this Chapter charging an individual to income tax under Schedule E by reason of the occurrence of an event relating to any of his shares, any reference to ‘the appropriate percentage’ in relation to those shares shall be determined according to the time of that event, as follows:— | ||
(a) if the event occurs before the fourth anniversary of the date on which the shares were appropriated to the participant and paragraph (c) does not apply, the appropriate percentage is 100 per cent.; | ||
(b) if the event occurs on or after the fourth anniversary and before the fifth anniversary of the date on which the shares were appropriated to the participant and paragraph (c) does not apply, the appropriate percentage is 75 per cent.; and | ||
(c) if, in a case where at the time of the event the participant— | ||
(i) has ceased to be an employee or director of a relevant company as mentioned in subsection (5) (a), or | ||
(ii) has reached pensionable age, as defined in section 2 of the Social Welfare (Consolidation) Act, 1981 , | ||
the event occurs before the fifth anniversary of the date on which the shares were appropriated to him, the appropriate percentage is 50 per cent.”. |