5(1)Section 644 (meaning of relevant earnings) shall be amended as follows.U.K.
(2)In subsection (2) for “(5)” there shall be substituted “(6F)”.
(3)The following subsections shall be inserted after subsection (6)—
“(6A)Emoluments of an individual as an employee of a company are not incomewithin subsection (2) above if—
(a)he is a controlling director of the company at any time in the year ofassessment in question or has been a controlling director of the company atany time in the ten years immediately preceding that year of assessment, and
(b)any of subsections (6B) to (6E) below applies in his case.
(6B)This subsection applies in the case of the individual if—
(a)at any time in the year of assessment in question he is in receipt ofbenefits under a relevant superannuation scheme, and
(b)the benefits are payable in respect of past service with the company.
(6C)This subsection applies in the case of the individual if—
(a)at any time in the year of assessment in question he is in receipt ofbenefits under a personal pension scheme,
(b)the scheme has received a transfer payment relating to him from a relevantsuperannuation scheme, and
(c)the transfer payment is in respect of past service with the company.
(6D)This subsection applies in the case of the individual if—
(a)at any time in the year of assessment in question he is in receipt ofbenefits under a relevant superannuation scheme,
(b)the benefits are payable in respect of past service with another company,
(c)the emoluments are for a period during which the company mentioned insubsection (6A) above has carried on a trade or business previously carriedon by the other company, and
(d)the other company carried on the trade or business at any time during theperiod of service in respect of which the benefits are payable.
(6E)This subsection applies in the case of the individual if—
(a)at any time in the year of assessment in question he is in receipt ofbenefits under a personal pension scheme,
(b)the scheme has received a transfer payment relating to him from a relevantsuperannuation scheme,
(c)the transfer payment is in respect of past service with another company,
(d)the emoluments are for a period during which the company mentioned insubsection (6A) above has carried on a trade or business previously carriedon by the other company, and
(e)the other company carried on the trade or business at any time during theperiod of service in respect of which the transfer payment was made.
(6F)For the purposes of subsections (6A) to (6E) above—
(a)a person is a controlling director of a company if he is a director (asdefined by section 612(1)), and he is within paragraph (b) of section 417(5),in relation to the company;
(b)“relevant superannuation scheme” has the same meaning as insection 645(1);
(c)references to benefits payable in respect of past service with a companyinclude references to benefits payable partly in respect of past service withthe company; and
(d)references to a transfer payment in respect of past service with a companyinclude references to a transfer payment partly in respect of past servicewith the company.”
(4)This paragraph shall be deemed to have come into force on 6th April 1989.