Finance Act, 2000

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Savings-related share option schemes.

51.—The Principal Act is amended—

(a) in Chapter 3 (inserted by the Finance Act, 1999 ) of Part 17—

(i) in section 519A by the insertion after subsection (3) of the following:

“(3A) (a) Where, in exercising a right in accordance with the provisions of the scheme at a time when it is approved, the individual acquires scheme shares from a relevant body, neither a chargeable gain nor an allowable loss shall accrue to the relevant body on the disposal of the scheme shares, and the individual shall, notwithstanding section 547(1)(a), be deemed for the purposes of the Capital Gains Tax Acts to have acquired the scheme shares for a consideration equal to the amount paid for their acquisition.

(b) In this subsection and in section 519B—

‘relevant body’ means a trust or a company which exists for the purpose of acquiring and holding scheme shares;

‘schemes shares’ has the meaning assigned to it by paragraph 10 of Schedule 12A.”.

and

(ii) in section 519B—

(I) in subsection (1), by the substitution for “This section shall apply” of “Subject to subsection (2A) this section shall apply”, and

(II) by the insertion after subsection (2) of the following:

“(2A) Notwithstanding any provision of the Tax Acts, any sum expended by the company, either directly or indirectly, to enable a relevant body to acquire scheme shares shall not be included—

(a) in the sums to be deducted in computing for the purposes of Schedule D the profits or gains of a trade carried on by the company, or

(b) if the company is an investment company within the meaning of section 83 or a company in the case of which that section applies by virtue of section 707, in the sums to be deducted under section 83(2) as expenses of management in computing the profits of the company for the purposes of corporation tax.”,

and

(b) in Schedule 12A—

(i) in paragraph 1(1)—

(I) by the substitution in the definition of “shares” of “stock;” for “stock.”, and

(II) by the insertion after the definition of “shares” of the following:

“specified age’ means an age that is not less than 60 years and not more than pensionable age (within the meaning of section 2 of the Social Welfare (Consolidation) Act, 1993 ).”,

(ii) by the insertion after paragraph 2(4) of the following:

“(5) The scheme shall indicate the specified age for the purposes of the scheme.”,

(iii) in paragraph 20(b), by the substitution of “the specified age” for “pensionable age (within the meaning of section 2 of the Social Welfare (Consolidation) Act, 1993 )”, and

(iv) in paragraph 21 by the substitution of “the specified age” for “pensionable age”.