Government Clarifies Grandfathering for Existing Stock Options

In its 2015 election platform, the Liberal Party announced its plan to change the taxation of stock options, by capping the amount that may be claimed under the 50% stock option deduction generally available in respect of eligible stock options. Since the election, there has been concern among tax practitioners and the business community that any proposed limits might be applied to the future exercise of stock options that have already been granted.