Taxes Consolidation Act 1997 section 479

Relief for new shares purchased on issue by employees

Section 479 gives an employee or director an income tax deduction of up to a lifetime limit of €6,350 for money subscribed for new ordinary shares in the company they work for (or in its holding company), but the relief is no longer available for shares subscribed on or after 8 December 2010.

• Lifetime deduction from total income of up to €6,350 for an employee or director subscribing at market value for new ordinary shares in their employing company (or its holding company).
• The shares must be fully paid up, carry no preferential rights for three years, and be subscribed for in a qualifying Irish-incorporated and Irish-resident trading or holding company.
• Relief is fully clawed back if the shares are disposed of, or if the employee receives money or money's worth in respect of them, within three years of acquisition.
• Relief is not available for shares subscribed for on or after 8 December 2010, so in practice the section now governs only historic claims and the three-year claw-back of relief previously given.