(1)Section 140A of the Taxes Act 1988 (conditional acquisition of shares) is amended as follows.
(2)Omit subsection (2).
(3)In subsection (3), for “In any other case” substitute “If the terms on which the employee acquires the employee’s interest are such that his interest in the shares in question will cease to be only conditional within five years after his acquisition of the interest”.
(4)In subsection (4), for “, in a case falling within subsection (2) or (3) above” substitute “(whether or not subsection (3) above applies)”.
(5)This section applies in relation to shares acquired on or after the day on which this Act is passed.