HC Deb 17 July 1995 vol 263 cc889-90W
Mr. Matthew Banks

To ask the Chancellor of the Exchequer when he expects to receive a copy of the Greenbury report; when he plans to respond to any taxation matters it raises; and if he will make a statement. [35294]

Mr. Kenneth Clarke

The Greenbury report was published today. In the light of its recommendations, the Government have decided to amend the tax treatment of executive share options so that any gain from the exercise of such options will be taxable as income rather than as capital gain. I propose to introduce legislation in the next Finance Bill to withdraw the income tax reliefs at present available to directors and employees participating in executive share option schemes which have been approved by the Inland Revenue. The withdrawal of the reliefs will take effect in relation to grants or exercises of options on or after today.

The tax reliefs for approved all-employee savings-related share option schemes will not be affected by this proposal.