Finance Act, 1995

Amendment of Chapter IX (Profit Sharing Schemes) of Part I of, and Third Schedule (Profit Sharing Schemes) to, Finance Act, 1982.

16.—Chapter IX of Part I of, and the Third Schedule to, the Finance Act, 1982 , are hereby amended, as respects the year of assessment 1995-96 and subsequent years of assessment, by the substitution in subsections (1) and (2) of section 56 and subparagraph (4) of paragraph 1 of the Third Schedule of “£10,000” for “£2,000”, and the said subsections (1) and (2) and the said subparagraph (4), as so amended, are set out in the Table to this section.

TABLE

(1) If the total of the initial market values of all the shares which are appropriated to an individual in any one year of assessment (whether under a single approved scheme or under two or more such schemes) exceeds £10,000, subsections (4) to (7) shall apply to the excess shares, that is to say, any share which caused that limit to be exceeded and any share appropriated after that limit was exceeded.

(2) For the purposes of subsection (1), if a number of shares is appropriated to an individual at the same time under two or more approved schemes, the same proportion of the shares appropriated at that time under each scheme shall be regarded as being appropriated before the limit of £10,000 is exceeded.

(4) The scheme must provide that the total of the initial market values of the shares appropriated to any one participant in a year of assessment will not exceed £10,000.