Finance Act, 1992
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Amendment of Chapter IX (profit sharing schemes) of Part I of and Third Schedule (profit sharing schemes) to Finance Act, 1982. |
17.—(1) Subject to subsection (2), Chapter IX of Part I of, and the Third Schedule to, the Finance Act, 1982 , are hereby amended, as respects the year of assessment 1992-93 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 “£2,000” for “£5,000”, and the said subsections (1) and (2) and the said paragraph 1 (4), as so amended, are set out in the Table to this section. | |
(2) (a) Where, in the case of an individual, the total of the initial market values of any shares appropriated to him in the year of assessment 1991-92 (whether under a single approved scheme or under two or more such schemes) is less than £2,000, then, subject to paragraph (b), subsection (1) shall apply and have effect for the year of assessment 1992-93 as if for “£2,000” there were substituted “an amount equal to the sum of £2,000 and the amount by which £2,000 exceeds the total of the initial market values of any shares appropriated to him (whether under a single approved scheme or under two or more such schemes) in the year of assessment 1991-92”. | ||
(b) Where, in the case of an individual, paragraph (a) has effect for the year 1992-93— | ||
(i) the shares represented by the excess shall be deemed, for all the purposes of Chapter IX of Part I of, and the Third Schedule to, the Finance Act, 1982 , to have been appropriated to the individual on the 5th day of April, 1992, and | ||
(ii) if shares have been appropriated to the individual at different times during the year, the excess shall be regarded as represented by those shares issued earlier rather than those issued later. | ||
(c) In this subsection— | ||
“approved scheme”, “initial market value” and “shares” have the same meanings as they have in either or both Chapter IX of Part I of, and the Third Schedule to, the Finance Act, 1982 ; | ||
“excess” means the amount referred to in paragraph (a), being the amount by which £2,000 exceeds the total of the initial market values of any shares appropriated to an individual (whether under a single approved scheme or under two or more such schemes) in the year of assessment 1991-92; | ||
“individual” means a participant in an approved scheme. | ||
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 £2,000, 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 £2,000 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 £2,000. |