Regulation 4 Amendment of regulation 19 of the principal Regulations

for sub-paragraphs (k) and (l)^f1 of paragraph (1) there shall be substituted the following sub-paragraphs—

“(k)

a payment by way of shares where such shares—

(i)

form part of the ordinary share capital of—

(aa)

a company (aa) the secondary contributor, or

(bb)

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) apply, or

(bb)

non-tradeable shares;

(l)

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^f2 (approved share option schemes and profit sharing schemes) 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;”;

sub-paragraph (f) of paragraph (7)^f3 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 added the following paragraph—

“(8)

For the purposes of paragraph (1)(k) and (l) 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 section 207(1) of the Financial Services Act 1986^f4 (interpretation) and no trading arrangements exist in respect of it;

(b)

“shares” include stock.”.