Income Tax Act 2007

Income - Terminating provisions

CZ 1: Grandparented shares under employee share schemes

You could also call this:

"Old tax rules apply to shares you got from work before 12 May 2016"

You have shares under an employee share scheme. These shares were granted or acquired before a certain date. You got them for genuine reasons, not to avoid tax. You have shares that were granted or acquired before 12 May 2016. The new employee share scheme rules do not apply to these shares. Instead, the old rules apply to these shares. The new rules do not apply if the share scheme taxing date is before 1 April 2022. This is because the shares were granted or acquired before the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 started.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513493.

This page was last updated on 29 January 2026 — View changes

Topics:

Money and consumer rights > Taxes

CX 64: Income from financial instrument, or

"Money from financial instruments that may be tax-free"

CZ 2: Mining company’s 1970–71 tax year, or

"Outdated tax rule for mining companies from 1970-1971 removed in 2014"

Part CIncome
Terminating provisions

CZ 1Grandparented shares under employee share schemes

This section applies when, for shares under an employee share scheme,—
the shares were granted or acquired under the employee share scheme before the date that is 6 months after the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 receives the Royal assent, and—
1. the shares were granted or acquired for purposes not including the purpose of avoiding the future application of the employee share scheme provisions in that Act (the new ESS provisions); and
2. the share scheme taxing date for the shares is before 1 April 2022:
the shares were granted or acquired under the employee share scheme before 12 May 2016.

The new ESS provisions do not apply for the shares. Instead, the provisions of this Act that would apply ignoring the enactment of the new ESS provisions apply for the shares.

Notes

Section CZ 1: replaced, on 29 September 2018, by section 42 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).