What an employee share scheme is, the taxing date and apportionment
This interpretation statement considers what an employee share scheme is, including the exclusions to the definition. The statement then explains when the share scheme taxing date arises and when shares are held by or for the benefit of an employee. It also covers the circumstances when the share scheme taxing date may be deferred. Finally, it addresses how benefits are apportioned when some of the employee’s entitlement arises when they are non-resident.
| The Taxation (Annual Rates for 2025-26, Compliance Simplification, and Remedial Measures) Bill was introduced on 26 August 2025. Clause 10 of the Bill includes proposals to amend the taxing date for benefits under ESS where shares are not held by or for the benefit of an ESS beneficiary, but the ESS beneficiary has an unconditional right to presently receive the shares (ie upon vesting of the benefit under the ESS). IS 25/04 was published prior to introduction of this Bill and does not discuss or refer to the proposals. |