37(1)In Chapter 3C of Part 7 (securities acquired for less than market value), section 446U (discharge of notional loan) is amended as follows.U.K.
(2)In subsection (1), omit the “or” at the end of paragraph (a) and for paragraph (b) substitute—
“(b)if there is an outstanding or contingent liability to pay for the employment-related securities, that liability is released, extinguished, transferred or adjusted so as no longer to bind any associated person (except in circumstances in which subsection (4)(aa) applies), or”.
(3)After that subsection insert—
“(1A)Subsection (1)(a) does not apply if, at the time of the acquisition, there was an actual or contingent liability to make one or more further payments equal to the amount initially outstanding for the employment-related securities.”
(4)In subsection (4), omit the “or” at the end of paragraph (a) and after that paragraph insert—
“(aa)the employment-related securities, together with the liability to make such further payment or payments, are disposed of otherwise than to an associated person and for consideration of an amount that reflects the transfer of the liability, or”.