Regulation 4 Amendment of regulation 19 of the principal Regulations

for sub-paragraphs (1)(l) and (m) there shall be substituted the following sub-paragraphs —

“(l)

a payment by way of shares where such shares —

(i)

form part of the ordinary share capital of —

(aa)

the secondary contributor; or

(bb)

a company which has control of that secondary contributor; or

(cc)

a company which either is, or has control of, a body corporate which is a member of a consortium owning either that secondary contributor or a body corporate having control of that secondary contributor; and

(ii)

are either —

(aa)

appropriated under a profit sharing scheme to which the provisions of section 186 of the Income and Corporation Taxes Act 1988 (approved) profit sharing schemes)^f2 apply; or

(bb)

non-tradeable shares;

(m)

a payment by way of an option to acquire shares where such option is —

(i)

a right obtained in accordance with the provisions of a scheme approved under Schedule 9 to the Income and Corporation Taxes Act 1988 for the purposes of section 185 of that Act (approved share option schemes); or

(ii)

a right to acquire shares which are non-tradeable shares and is a non-tradeable option”;

paragraph (7)(f) shall be omitted;

at the end of paragraph (7) there shall be added the following sub-paragraph —

“(g)

a payment by way of shares appropriated under a profit sharing scheme to which the provisions of section 186 of the Income and Corporation Taxes Act 1988 (approved profit sharing schemes) apply includes a payment derived from such shares.”;

after paragraph (7) there shall be inserted the following paragraph —

“(7A)

For the purposes of paragraphs (1)(l) and (m) of this regulation —

(a)

a share or option is non-tradeable if at the time when the payment is made, that share or option is incapable of being sold or otherwise realised on a recognised investment exchange within the meaning of the Financial Services Act 1986^f3 and no trading arrangements exist in respect of it;

(b)

“shares” include stock.”