Finance Act, 1982

Chapter IX

Profit Sharing Schemes

Interpretation (Chapter IX ).

50.—(1) In this Chapter and in the Third Schedule —

“the appropriate percentage”, in relation to any shares, shall be construed in accordance with section 52 (8);

“approved scheme” shall be construed in accordance with section 51 (2);

“the company concerned” has the meaning assigned to it by paragraph 1 (1) of the Third Schedule ;

“group scheme” and, in relation to such a scheme, “participating company” have the meanings assigned by paragraph 1 (2) of that Schedule;

“initial market value”, in relation to any shares, shall be construed in accordance with section 51 (4);

“locked-in value”, in relation to any shares, shall be construed in accordance with section 53 (2);

“market value”, in relation to any shares, has the meaning assigned to it by section 49 of the Capital Gains Tax Act, 1975 ;

“ordinary share capital” has the meaning assigned to it by section 155 of the Corporation Tax Act, 1976 ;

“participant” shall be construed in accordance with section 51 (2) (a);

“the period of retention” has the meaning assigned to it by section 52 (5);

“the release date” has the meaning assigned to it by section 52 (7);

“shares” includes stock;

“the trust instrument”, in relation to an approved scheme, means the instrument referred to in paragraph 1 (3) (c) of the Third Schedule ;

“the trustees”, in relation to an approved scheme or a participant's shares, means the body of persons for the establishment of which the scheme must provide as mentioned in paragraph 1 (3) of the Third Schedule .

(2) Any provision of this Chapter with respect to—

(a) the order in which any of a participant's shares, are to be treated as disposed of for the purposes of this Chapter, or

(b) the shares in relation to which an event is to be treated as occurring for any such purpose,

shall have effect notwithstanding any direction given to the trustees with respect to shares of a particular description or to shares appropriated to the participant at a particular time.

(3) For the purposes of capital gains tax—

(a) no deduction shall be made from the consideration for the disposal of any shares by reason only that an amount determined under this Chapter is chargeable to income tax;

(b) any charge to income tax by virtue of section 54 shall be disregarded in determining whether a distribution is a capital distribution within the meaning of paragraph 1 of Schedule 2 to the Capital Gains Tax Act, 1975 ; and

(c) nothing in any such provision as is referred to in subsection (2) shall affect the rules applicable to the computation of a gain accruing on a part disposal of a holding of shares or other securities which were acquired at different times.