78U.K.Schedule 2 to ITEPA 2003 is amended as follows.
79(1)In Part 6 (partnership shares) paragraph 52 (application of money deducted in accumulation period) is amended as follows.U.K.
(2)After sub-paragraph (2) insert—
“(2A)The number of shares awarded to the employee must be determined in accordance with one of sub-paragraphs (3), (3A) and (3B) and the partnership share agreement must specify which one of those sub-paragraphs is to apply for the purposes of the agreement.”
(3)In sub-paragraph (3) for “The number of shares awarded to each” substitute “ If the agreement specifies that this sub-paragraph is to apply, the number of shares awarded to the ”.
(4)After sub-paragraph (3) insert—
“(3A)If the agreement specifies that this sub-paragraph is to apply, the number of shares awarded to the employee must be determined in accordance with the market value of the shares at the beginning of the accumulation period.
(3B)If the agreement specifies that this sub-paragraph is to apply, the number of shares awarded to the employee must be determined in accordance with the market value of the shares on the acquisition date.”
(5)In sub-paragraphs (4) and (5) for “and (3)” substitute “ to (3B) ”.
80U.K.In Part 9 (trustees) in paragraph 75 (duty to give notice of award of shares etc) in sub-paragraph (3) for paragraph (c) substitute—
“(c)stating the market value in accordance with which the number of shares awarded to the employee was determined.”
81(1)The amendments made by paragraphs 79 and 80 above have effect in relation to partnership share agreements made on or after the day on which this Act is passed.U.K.
(2)A trust instrument made before that day has effect with any modifications needed to reflect the amendment made by paragraph 80 above.