26(1)Amend section 186 (approved profit sharing schemes) as follows.U.K.
(2)In subsection (3)—
(a)omit “the participant shall be chargeable to income tax under Schedule E for the year of assessment in which the entitlement arises on”, and
(b)at the end add “ counts as employment income of the participant for the year of assessment in which the entitlement arises ”.
(3)In subsection (4)—
(a)omit “the participant shall be chargeable to income tax under Schedule E for the year of assessment in which the disposal takes place on”, and
(b)at the end add “ counts as employment income of the participant for the year of assessment in which the disposal takes place ”.
(4)In subsection (5)(a), for the words from “chargeable to income tax” to “those shares” substitute “entitled to a capital receipt (within the meaning of subsection (3) above) which is referable to those shares and—
(i)an amount calculated by reference to that capital receipt counts as his employment income by virtue of subsection (3) above, or
(ii)if the entitlement to the capital receipt arose before 6th April 2003, he was chargeable to income tax by virtue of that subsection (as it had effect before that date) in respect of that capital receipt,”.