• The 30-day rule

    If your employee disposes of their ESS interest (or the share acquired on exercise of the right) within 30 days after the deferred taxing point, the deferred taxing point becomes the date of that disposal – this is called the 30-day rule.

    You must take this rule into account when you are aware there has been a disposal.

    In some situations, this means that the 30-day rule will move the deferred taxing point from one financial year into the next.

    If you become aware of the disposal …

    Then you must …

    before issuing the ESS statement for the earlier year to your employee

    update the ESS statement for the earlier year so that it does not show a discount for those ESS interests in that year (but in the ESS statement for the later year).

    after issuing the ESS statement for the earlier year to the employee

    give an amended ESS statement to your employee to remove the discount for those ESS interest in that earlier year.

    You will need to show the discount in the ESS statement for the later year.

    If you have already sent us the ESS annual report for the earlier year, you will need to amend it. This will ensure that your employee's records and our records are the same.

      Last modified: 12 Jul 2016QC 23058