Employees purchasing newly-issued shares in the Irish companies in which they work will qualify for tax relief if they hold them for a period of three years as a result of changes to be published in the 1998 Finance Bill.

Previously the relief was withdrawn if the shares were disposed of within five years but the Finance Bill will reduce this to three years. The relief will remain subject to a lifetime cap of £5,000 on the value of shares purchased.

The move should encourage profit sharing which makes business as well as social sense, according to the Irish Profit Sharing Association.