Income Tax Act 2007 section 103

Share incentive plans: definition of "applicable period"

Section 103 modifies the rules for determining the "applicable period" in relation to shares held under a share incentive plan where the plan trustees acquired the relevant shares before 11 May 2001.

• This provision only applies where the plan trustees acquired the relevant shares before 11 May 2001
• It modifies section 489, which defines the "applicable period" for shares, by removing the initial test in subsection (2) and simplifying the remaining conditions
• The modified rules focus on whether shares in the relevant company were readily convertible assets at the time the trustees acquired the relevant shares, rather than applying the standard tests
• Cross-references within section 489 are adjusted so that the remaining subsections work correctly without the omitted provisions