SCHEDULES

SCHEDULE 21Approved share plans and schemes

Part 1Share incentive plans

Partnership shares

7

(1)

Paragraph 46 (maximum amount of partnership share money deductions) is amended as follows.

(2)

In sub-paragraph (1), for the words after “must not exceed” substitute “ £1,500 in any tax year. ”.

(3)

In sub-paragraph (2), for the words after “an employee’s salary” substitute “ for any tax year must not exceed 10% of the employee’s salary for the tax year. ”.

(4)

After that sub-paragraph insert—

“(4A)

A limit lower than that specified in sub-paragraph (2) may be framed—

(a)

as a proposition substituting a percentage lower than that so specified, or

(b)

as a proposition that a particular description of earnings is not to be regarded as forming part of an employee’s salary for the purposes of that sub-paragraph.”.

(5)

Sub-paragraphs (2) and (3) have effect for the year 2003-04 and subsequent years of assessment.

8

In paragraph 47 (minimum amount of deductions)—

(a)

for “in any month” substitute “ on any occasion ”, and

(b)

omit sub-paragraph (3).