Approved Profit-Sharing Schemes (APSS): Incentives to promote approved profit-sharing schemes were first introduced in 1982. Employees in a company may be given shares worth up to £10,000 (€12,697) in that company per annum tax free. In the 1999 Finance Act, the £10,000 annual limit was increased to £30,000 on a once-off conditional basis. To qualify, shares must have been held in an Employee Share Ownership Trust (ESOT) for 10 years.

Employee Share-Ownership Plan (ESOP): First introduced in 1997, the basic idea of an ESOP is that a trust acquires shares in the company for the benefit of the employees. They are being introduced mainly in commercial State enterprises undergoing privatisation.

Save-As-You-Earn (SAYE) share-option scheme: Under this scheme, employees agree to save for a fixed time and are given the option to buy shares at a predetermined discount price. At the end of the savings' period employees can:

a) take their savings and a tax free bonus or;

b) avail of the option to purchase the shares at the initial fixed price.

Gains depend on share price performance and profits made on the exercise of the share option are subject to capital gains tax on disposal rather than income tax.

To date (April 2000), 28 SAYE schemes have been approved by the Revenue Commissioners and there are 30 applications awaiting a decision.

Tax Relief: An employee may claim full tax relief on shares purchased in his or her employer's company up to a lifetime limit of £5,000. The shares must be retained for a minimum of three years.

Tax relief can be claimed on the interest on loans taken out to purchase shares in an employer's company. Tax relief can also be claimed for loans made by employees to a company that is not publicly quoted.