Taxes Consolidation Act 1997 Schedule 32 paragraph 7

Approved Share Option Schemes

Paragraph 7 of Schedule 32 provides income tax relief for directors and employees who obtained share options under a Revenue-approved share option scheme during a limited window from 6 April 1986 to 28 January 1992.

• The relief applied only to share options granted between 6 April 1986 and 28 January 1992 under schemes approved under the Second Schedule to the Finance Act 1986.
• Where the option was exercised while the scheme remained approved, no income tax arose under section 128 on any gain realised on exercise, and section 547 (market value rules) did not apply to the share acquisition.
• Although the Second Schedule to the Finance Act 1986 was not re-enacted in the Taxes Consolidation Act 1997, it continues to have effect for the purposes of this paragraph, and the TCA 1997 applies with any necessary modifications.
• Penalty provisions under sections 1052, 1054 and, as appropriate, section 1077E or 1077F apply as if the Second Schedule to the Finance Act 1986 were listed in Schedule 29.