Regulation 3 Amendments to the Principal Regulations

at the beginning there shall be inserted–

• ““approved profit sharing scheme” and “approved share option scheme” have the same meaning as in Chapter IV of Part V of the Taxes Act;”

for the definition of “ordinary share” there shall be substituted–

• ““ordinary share” means a share forming part of a company’s share capital other than–

  1. (a)

     a share which carries no right to share in the profits of a company except a right to dividends of a fixed amount or at a fixed rate per cent. of its nominal value, and

  2. (b)

     a share which carries no such right but carries a right to conversion into a share which carries such a right;”;

in the definition of “authorised unit trust” for the words “within the meaning of” to the end there shall be substituted the words “or a fund of funds”;

after the definition of “authorised unit trust” there shall be inserted–

• ““authorised securities scheme” means a unit trust scheme the sole object of which is to enable participants to participate in or receive profits or income arising from the acquisition, holding, management or disposal of transferable securities or sums paid out of such profits or income being a scheme which is not a fund of funds;

• “fund of funds” means a unit trust scheme the sole object of which is to enable participants to participate in or receive profits or income arising from the acquisition, holding, management or disposal of units in authorised securities schemes or sums paid out of such profits or income;”.