On Wednesday 24th November the Irish Government published its 4 year National Recovery Plan outlining budgetary cuts and taxation measures it proposes are implemented.

The Recovery Plan includes some key changes to the taxation of share incentives. According to the Plan Approved Share Option Schemes are to be abolished in 2011. Further expenditures "to be curtailed or otherwise restricted" include:  

  • PRSI, Health and Income Levy charge on Approved Profit Sharing Schemes.
  • PRSI, Health and Income Levy charge on Approved Save-As-You-Earn Schemes.
  • PRSI, Health Levy charge for Unapproved Share Options.
  • PRSI, Health Levy charge for Share Awards.

The tax exemption for patent royalties is also due to be abolished.

It is anticipated that the changes referred to above are among those which will be introduced in this year's budget on December 7th (when the date from which the new measures apply will be confirmed).