Regulation 2

For regulation 3(2) of the Income Tax (Employments) (Notional Payments) Regulations 1994^f1 there shall be substituted—

“(2)

The property described is—

(a)

any shares acquired by the employee (whether or not as a result of the exercise of a right to acquire shares) under a scheme approved by the Board under Schedule 9 to the Taxes Act (approved share option schemes and profit sharing schemes),

(b)

any right over or interest in shares obtained or acquired by the employee under such a scheme, and

(c)

any shares acquired by the employee as a result of the exercise of a right over shares obtained before 27th November 1996 otherwise than under a scheme approved by the Board under Schedule 9 to the Taxes Act,

where the shares in question form part of the ordinary share capital of—

(i)

an employer which is a company (“the employer company”), or

(ii)

a company which has control of the employer company, or

(iii)

a company which either is, or has control of, a company which is a member of a consortium owning either the employer company or a company having control of the employer company.”