The Finance Bill enacts all the main changes announced on Budget day to income tax and other taxes. These include the standard rating of personal and PAYE tax allowances, increase in income tax exemption limits, the move towards a 12.5 per cent level of corporation income tax, the reduction in betting tax and the increase in vehicle registration tax on large cars.

The Bill details how the save-as-you-earn scheme announced in the Budget will work. This provides for employees to save for a certain period to acquire shares in their company. Such schemes may involve employees saving for three, five or seven years - with the interest on these savings tax free - and may involve companies offering a discount of up to 25 per cent on the prices of the shares. The gain on such shares will be free of tax, but will be subject to capital gains tax if sold.

The Bill also includes further details on new measures announced in outline on January 21st. These include changes to employee share ownership schemes, allowing those who leave Telecom in the next five years to benefit from the allocation of shares in the flotation for up to 15 years. It also allows employees to take up to £30,000 in tax-free shares when the first distribution is made from the employee trust in around 10 years' time.

New rules will exempt more redundancy payments from tax, increasing the basic tax exemption to £8,000 plus £600 per year of service. In practice this will mean those receiving payments for the first time will get up to £12,000 tax free plus £600 per year of service.

The profits of Bord Gais, which were exempt from corporation tax since 1983, will now be taxed at the normal corporation tax rate.

The Bill also includes important new measures in the areas of Revenue Commissioners' powers, pensions, and Irish non-registered companies (see pages 1, 2 and 3). Other new measures includes in the Bill include the following.

The extension to 2002 of the current tax relief on corporate donations to the Enterprise Trust, which assists area partnership companies in disadvantaged areas and First Step, a non-profit making body which assists business start-ups.

The Bill provides for a £5,000 tax free allowance per annum for people working on oil rigs in Irish waters.

The new Investor Compensation Company, set up to compensate clients when an investment firm cannot meet its obligations, will be exempt from all income tax under the Bill.

The Bill provides for capital allowances to investors in buildings for third level education, where at least 50 per cent of the funds are provided by the public sector.

Existing provisions which facilitate the securitisation of certain assets will be broadened, to extend the range of assets which may be securitised outside the IFSC and to provide for a deduction from profits in respect of interest. Securitisation involves the sale of a block of assets which gives rise to an income flow - such as a book of mortgage or other loans.

Under current Capital Gains Tax law, share-for-share exchanges qualify for relief, where the exchange of shares is not regarded as a disposal in the hands of the shareholder. This provision will now apply to those dealing in securities.

The Bill amends existing provisions in relations to owner-occupied housing in Rural Renewal designated areas. The new amendment will allow refurbishment expenditure to be set off against the owner occupier's total income at a rate of 10 per cent per annum of the expenditure incurred. A similar relief will be put in place for construction expenditure at a rate of 5 per cent per year for 10 years.

Tax changes are also introduced to allow a special Government bond exchange programme to be undertaken by the National Treasury Management Agency to improve liquidity in the bond market.

The full text of the summary of the measures in the Bill is available on the Department of Finance website at http://www.irlgov.ie/finance/new.htm