Finance Act, 1984

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

31.—Chapter IX of Part I of and the Third Schedule to the Finance Act, 1982 , are hereby amended as follows—

(a) as respects the year 1984-85 and subsequent years of assessment, by the substitution in subsections (1) and (2) of section 56 and paragraph 1 (4) of the Third Schedule of “£5,000” for “£1,000”, and

(b) as respects any accounting period ending on or after the 6th day of April, 1984, by the deletion in the proviso to section 58 (1) of “20 per cent. of”,

and the said subsections (1) and (2), the said paragraph 1(4) and so much of the said proviso as precedes paragraph (i) thereof, 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 £5,000, 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 £5,000 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 £5,000.

Provided that no deduction shall be allowed under this section or under any other provision of the Tax Acts in respect of so much of any sum or the aggregate amount of any sums so expended in that accounting period as exceeds the company's—