Regulation 2 Amendment of the principal Regulations

Amend paragraph 7 of Schedule 4 as follows.

In sub-paragraph (3)^f1 for “the same year” substitute “the same year and, where the case falls within paragraph (b), during the following year”.

At the end of sub-paragraph (5)^f2 add—

• “This is subject to the following qualification.”.

After sub-paragraph (5) insert—

“(5A)

Where a payment—

(a)

falls within sub-paragraph (4)(e)^f3,

(b)

comprises a beneficial interest in shares, or

(c)

is treated as earnings within the meaning of Part 7 of the Income Tax (Earnings and Pensions) Act 2003^f4,

sub-paragraph (5B) applies.

(5B)

If this sub-paragraph applies—

(a)

sub-paragraph (5)(a) shall have effect as if “, but not in excess of,” were omitted; and

(b)

sub-paragraph (8)^f5 shall have effect as if at the end there were added “or the following year””.