The Income Tax (Earnings and Pensions) Act 200346 is amended as follows.

In section 498 (no charge on shares ceasing to be subject to share incentive plan in certain circumstances), in subsection (2)(c), for the words from “a transfer” to the end there is substituted “a relevant transfer within the meaning of the Transfer of Undertakings (Protection of Employment) Regulations 2006”.

In Schedule 2 (approved share incentive plans), in paragraph 32(2)(c), for the words from “a transfer” to the end there is substituted “a relevant transfer within the meaning of the Transfer of Undertakings (Protection of Employment) Regulations 2006”.