|
| |
| |
(3) Omit paragraphs (d), (f) and (h). | |
(4) This paragraph has effect— | |
(a) so far as relating to section 425, in accordance with the provision | |
made for the substitution of Chapter 2 of Part 7, and | |
(b) otherwise, in accordance with the provision made for the | 5 |
substitution of Chapter 5 of Part 7. | |
26 (1) Omit section 491 (no charge under Chapter 8 of Part 3 in respect of | |
acquisition of approved share incentive plan shares). | |
(2) Sub-paragraph (1) has effect in accordance with the provision made for the | |
repeal of Chapter 8 of Part 3. | 10 |
27 (1) Omit section 494 (no charge on removal of restrictions applying to approved | |
share incentive plan shares). | |
(2) Sub-paragraph (1) has effect— | |
(a) so far as relating to section 427, in accordance with the provision | |
made for the substitution of Chapter 2 of Part 7, and | 15 |
(b) so far as relating to section 449, in accordance with the provision | |
made for the substitution of Chapter 4 of Part 7. | |
28 (1) Omit section 495 (approved share incentive plan shares: value of shares in | |
dependent subsidiary). | |
(2) Sub-paragraph (1) has effect on 16th April 2003. | 20 |
29 (1) Omit section 518 (no charge in respect of acquisition of approved SAYE | |
share scheme option). | |
(2) Sub-paragraph (1) has effect on the day appointed under paragraph 3(2). | |
30 (1) In section 519 (no charge in respect of exercise of approved SAYE share | |
scheme option), omit subsection (4). | 25 |
(2) Sub-paragraph (1) has effect on the day appointed under paragraph 3(2). | |
31 (1) Omit section 520 (approved SAYE option schemes: no charge in respect of | |
post-acquisition benefits). | |
(2) Sub-paragraph (1) has effect in accordance with the provision made for the | |
substitution of Chapter 4 of Part 7. | 30 |
32 (1) Omit section 523 (no charge in respect of acquisition of approved CSOP | |
scheme option). | |
(2) Sub-paragraph (1) has effect on the day appointed under paragraph 3(2). | |
33 (1) In section 524 (no charge in respect of exercise of approved CSOP scheme | |
option), omit subsection (4). | 35 |
(2) Sub-paragraph (1) has effect on the day appointed under paragraph 3(2). | |
34 (1) Omit section 525 (approved CSOP schemes: no charge in respect of post- | |
acquisition benefits). | |
(2) Sub-paragraph (1) has effect in accordance with the provision made for the | |
substitution of Chapter 4 of Part 7. | 40 |
35 (1) In section 526(4) (charge where approved CSOP scheme option granted at a | |
discount: deductions of charge from amount chargeable under other | |
provisions), for the words from the beginning to “deductions” substitute | |
“Section 480(4) (gain realised on acquisition of securities pursuant to option | |
etc) provides for a deduction”. | 45 |
| |
| |
|
| |
| |
(2) Sub-paragraph (1) has effect— | |
(a) so far as relating to section 194, in accordance with the provision | |
made for the repeal of Chapter 8 of Part 3, and | |
(b) otherwise, on and after the day appointed under paragraph 3(2). | |
36 (1) Omit section 528 (enterprise management incentives: no charge in respect of | 5 |
acquisition of qualifying option). | |
(2) Sub-paragraph (1) has effect on the day appointed under paragraph 3(2). | |
37 (1) In section 531(4) (enterprise management incentives: limitation of charge on | |
exercise of qualifying option to acquire shares below market value), for the | |
words after “which” substitute “under section 478 (amount of charge under | 10 |
section 476) is to be regarded as the taxable amount for the purposes of | |
section 476 in respect of the acquisition of the shares pursuant to the | |
option.”. | |
(2) Sub-paragraph (1) has effect on and after the day appointed under | |
paragraph 3(2). | 15 |
38 (1) In section 532(5) (enterprise management incentives: modified tax | |
consequences following disqualifying events), for the words after “which” | |
substitute “under section 478 (amount of charge under section 476) is to be | |
regarded as the taxable amount for the purposes of section 476 in respect of | |
the acquisition of the shares pursuant to the option.”. | 20 |
(2) Sub-paragraph (1) has effect on and after the day appointed under | |
paragraph 3(2). | |
39 (1) In section 538 (share conversions excluded for purposes of section 536), for | |
subsection (4) substitute— | |
“(4) In this section— | 25 |
“associated company” has the same meaning as, by virtue of | |
section 416 of ICTA, it has for the purposes of Part 11 of ICTA, | |
“director” has the same meaning as in the benefits code (see | |
section 67) but also includes a person who is to be or has been | |
a director, | 30 |
“employee” includes a person who is to be or has been an | |
employee, and | |
“employee-controlled” has the same meaning as in Chapters 1 | |
to 4 of this Part (see section 421H(1)).”. | |
(2) Sub-paragraph (1) has effect on and after the day appointed under | 35 |
paragraph 3(2). | |
40 (1) In section 540(1) (enterprise management incentives: notional loan | |
provisions not to apply in relation to acquisition of shares by exercise of | |
qualifying option), for “Chapter 8 of Part 3” substitute “Chapter 3C of this | |
Part”. | 40 |
(2) Sub-paragraph (1) has effect in accordance with the provision made for the | |
repeal of Chapter 8 of Part 3. | |
41 (1) In section 541 (enterprise management incentives: effect on other income tax | |
charges), for subsections (1) and (2) substitute— | |
“(1) Nothing in the EMI code affects— | 45 |
(a) the operation of Chapters 2 to 4 of this Part in relation to | |
shares acquired under a qualifying option, or | |
| |
| |
|
| |
| |
(b) the operation of Chapter 5 of this Part otherwise than in | |
relation to the acquisition of shares under a qualifying | |
option. | |
(2) But in calculating the taxable amount for the purposes of section 426 | |
(post-acquisition charge on restricted securities) in respect of shares | 5 |
acquired under a qualifying option, the amount of relief on the | |
exercise of the option is to be regarded as a deductible amount for the | |
purposes of section 428 (amount of charge).”. | |
(2) So far as relating to— | |
(a) Chapter 9 of Part 3 (which is repealed and replaced by provisions | 10 |
inserted in Part 7), | |
(b) any of the new Chapters substituted or inserted in Part 7 by this | |
Schedule, and | |
(c) each of the Chapters of that Part as originally enacted for which new | |
Chapters are substituted by this Schedule, | 15 |
sub-paragraph (1) has effect in accordance with the provision made for the | |
taking effect of the repeal, substitution or insertion. | |
42 (1) Part 2 of Schedule 1 (index of defined expressions) is amended as follows. | |
(2) Omit the entries relating to— | |
“acquisition (in Chapter 8 of Part 3)”, | 20 |
“the acquisition (in Chapter 8 of Part 3)”, | |
“acquisition (in Chapter 9 of Part 3)”, | |
“the acquisition (in Chapter 4 of Part 7)”, | |
“as a director or employee, in relation to the acquisition of an interest | |
in shares (in Chapter 2 of Part 7)”, | 25 |
“as a director or employee, in relation to the acquisition of shares or an | |
interest in shares (in Chapter 3 of Part 7)”, | |
“as a director or employee, in relation to the acquisition of shares or an | |
interest in shares (in Chapter 4 of Part 7)”, | |
“assign, in relation to a share option (in Chapter 5 of Part 7)”, | 30 |
“associated company (in Chapter 4 of Part 7)”, | |
“company (in Chapter 5 of Part 7)”, | |
“the Contributions and Benefits Act (in Chapter 5 of Part 7)”, | |
“convertible, in relation to shares (in Chapter 3 of Part 7)”, | |
“dependent subsidiary (in Chapter 4 of Part 7)”, | 35 |
“director (in Chapter 2 of Part 7)”, | |
“director (in Chapter 3 of Part 7)”, | |
“director (in Chapter 4 of Part 7)”, | |
“director (in Chapter 5 of Part 7)”, | |
“employee (in Chapter 8 of Part 3)”, | 40 |
“employee (in Chapter 9 of Part 3)”, | |
“employee (in Chapter 2 of Part 7)”, | |
“the employee (in Chapter 2 of Part 7)”, | |
“employee (in Chapter 3 of Part 7)”, | |
“the employee (in Chapter 3 of Part 7)”, | 45 |
“employee (in Chapter 4 of Part 7)”, | |
“the employee (in Chapter 4 of Part 7)”, | |
| |
| |
|
| |
| |
“employee (in Chapter 5 of Part 7)”, | |
“the employee (in Chapter 5 of Part 7)”, | |
“employee-controlled (in relation to a company) (in Chapter 4 of Part | |
7)”, | |
“the employee’s interest (in Chapter 2 of Part 7)”, | 5 |
“the employer company (in Chapter 2 of Part 7)”, | |
“the employer company (in Chapter 3 of Part 7)”, | |
“the employer company (in Chapter 4 of Part 7)”, | |
“employment-related shares (in Chapter 9 of Part 3)”, | |
“the employment-related shares (in Chapter 8 of Part 3)”, | 10 |
“held by outside shareholders (in Chapter 4 of Part 7)”, | |
“interest in shares (in Chapter 8 of Part 3)”, | |
“interest in shares (in Chapter 9 of Part 3)”, | |
“interest in shares (in Chapter 4 of Part 7)”, | |
“market value (in Chapter 8 of Part 3)”, | 15 |
“market value (in Chapter 9 of Part 3)”, | |
“market value (in Chapter 2 of Part 7)”, | |
“only conditional (interest in shares) (in Chapter 2 of Part 7)”, | |
“payment for the employment-related shares (in Chapter 8 of Part 3)”, | |
“release, in relation to a share option (in Chapter 5 of Part 7)”, | 20 |
“secondary Class 1 contributions (in Chapter 5 of Part 7)”, | |
“share option (in Chapter 5 of Part 7)”, | |
“the share option (in Chapter 5 of Part 7)”, | |
“shares (in Chapter 8 of Part 3)”, | |
“shares (in Chapter 9 of Part 3)”, | 25 |
“shares (in Chapter 2 of Part 7)”, | |
“the shares (in Chapter 2 of Part 7)”, | |
“shares (in Chapter 3 of Part 7)”, | |
“the shares (in Chapter 3 of Part 7)”, | |
“shares (in Chapter 4 of Part 7)”, | 30 |
“the shares (in Chapter 4 of Part 7)”, | |
“shares (in Chapter 5 of Part 7)”, | |
“terms (in Chapter 2 of Part 7)”, | |
“terms (in Chapter 3 of Part 7)”, and | |
“value (in relation to shares) (in Chapter 4 of Part 7)”. | 35 |
(3) At the appropriate places insert— | |
| | “the acquisition (in Chapters 1 to 4 of | section 421B(8) (see | | | | | Part 7) | also section 446Q(4))”, | | | | | “the acquisition (in Chapter 5 of Part 7) | section 471(5)”, | | | | | “associated company (in section | section 421H(2)”, | | 40 | | | 421H(1) and Chapters 2 to 4 of Part 7) | | | | | | “associated person (in Chapters 1 to 4 | section 421C”, | | | | | of Part 7) | | | |
|
| |
| |
|
| |
| |
| | “relevant period (in Chapter 3B of Part | section 446O”, | | | | | 7) | | | | | | “restricted securities and restricted | sections 423 and 424”, | | | | | interest in securities (in Chapters 2, 3A | | | | | | and 3B of Part 7) | | | 5 | | | “restriction (in Chapters 2, 3A and 3B of | section 432(8)”, | | | | | Part 7) | | | | | | “secondary Class 1 contributions (in | section 484(7)”, | | | | | Chapter 5 of Part 7) | | | | | | “securities (in Chapters 1 to 5 of Part 7) | section 420”, | | 10 | | | “securities option (in Chapters 1 to 5 of | section 420(8)”, | | | | | Part 7) | | | | | | “shares (in Chapters 1 to 5 of Part 7) | section 420(8)”, | | | | | “valuation date (in Chapter 3B of Part | section 446O”, | | | | | 7) | | | 15 | | | “variation, in relation to a restriction (in | section 427(4)”. | | | | | Chapter 2 of Part 7) | | | |
|
| |
(4) So far as relating to— | |
(a) Chapters 8 and 9 of Part 3 (which are repealed and replaced by | |
provisions inserted in Part 7), | 20 |
(b) each of the new Chapters substituted or inserted in Part 7, and | |
(c) each of the Chapters of that Part as originally enacted for which new | |
provisions are substituted, | |
sub-paragraphs (1) to (3) have effect in accordance with the provision made | |
for the taking effect of the repeal, substitution or insertion. | 25 |
43 (1) In paragraph 35 of Schedule 2 (approved share incentive plans: maximum | |
annual award), for sub-paragraphs (3) and (4) substitute— | |
“(3) For the purposes of this paragraph the market value of restricted | |
shares is to be determined as if they were not. | |
(4) Shares are “restricted shares” if there is any contract, agreement, | 30 |
arrangement or condition which makes provision to which any of | |
subsections (2) to (4) of section 423 (restricted securities) would | |
apply if the references in those subsections to the employment- | |
related securities were to the shares.”. | |
(2) Sub-paragraph (1) has effect in accordance with the provision made for the | 35 |
substitution of Chapter 2 of Part 7. | |
44 (1) In paragraph 42(3) of Schedule 3 (approved SAYE option schemes: | |
withdrawal of approval), for paragraph (b) substitute— | |
“(b) section 421G(b) (exemption from Chapters 2 to 4 of Part 7),”. | |
(2) Sub-paragraph (1) has effect in accordance with the provision made for the | 40 |
substitution of Chapter 4 of Part 7. | |
45 (1) Schedule 5 (enterprise management incentives) is amended as follows. | |
| |
| |
|
| |
| |
(2) In paragraph 5, for sub-paragraphs (7) and (8) substitute— | |
“(7) For the purposes of this paragraph the market value of restricted | |
shares is to be determined as if they were not. | |
(8) Shares are “restricted shares” if there is any contract, agreement, | |
arrangement or condition which makes provision to which any of | 5 |
subsections (2) to (4) of section 423 (restricted securities) would | |
apply if the references in those subsections to the employment- | |
related securities were to the shares.”. | |
(3) In paragraph 37, for sub-paragraphs (4) to (6) substitute— | |
“(4) Where the shares that may be acquired by the employee are | 10 |
restricted shares, the agreement must contain details of the | |
restrictions. | |
(5) For the purposes of sub-paragraph (4)— | |
(a) shares are “restricted shares” if there is any contract, | |
agreement, arrangement or condition which makes | 15 |
provision to which any of subsections (2) to (4) of section | |
423 (restricted securities) would apply if the references in | |
those subsections to the employment-related securities | |
were to the shares, and | |
(b) “restrictions” means that provision.”. | 20 |
(4) Sub-paragraphs (1) to (3) have effect in accordance with the provision made | |
for the substitution of Chapter 2 of Part 7. | |
46 (1) Schedule 7 (transitionals and savings) is amended as follows. | |
(2) Omit paragraphs 30 and 31. | |
(3) In the heading of Part 6, for “share-related” substitute “related to | 25 |
securities”. | |
(4) In the heading of Part 7, for “share-related income” substitute “income | |
related to securities”. | |
(5) Before paragraph 44 insert— | |
“Pre–6th April 2003 acquisitions | 30 |
43A (1) This paragraph relates to the operation of section 421E (exclusions | |
from Chapters 2 to 4 of Part 7: residence) in relation to an | |
acquisition made before 6th April 2003. | |
(2) Section 421E(1) has effect with the substitution of “the employee | |
was not chargeable under Case I of Schedule E in respect of the | 35 |
employment” for the words from “the earnings”. | |
(3) Section 421E(2) has effect with the substitution of “the | |
emoluments of the employment did not fall to be charged to | |
income tax under Schedule E” for the words from “the earnings”.”. | |
(6) In paragraph 44, after “Part 7” insert “, as originally enacted,”. | 40 |
(7) In paragraph 45(1), at end insert “, as originally enacted.”. | |
(8) In paragraph 46(1), after “disposal)” insert “, as originally enacted,”. | |
(9) Omit paragraphs 47 and 48. | |
(10) In paragraph 49, for “shares” substitute “securities”. | |
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