2.—(1) Amend paragraph 7 of Schedule 4 as follows.
(2) In sub-paragraph (3)(1) for “the same year” substitute “the same year and, where the case falls within paragraph (b), during the following year”.
(3) At the end of sub-paragraph (5)(2) add—
“This is subject to the following qualification.”.
(4) After sub-paragraph (5) insert—
“(5A) Where a payment—
(a)falls within sub-paragraph (4)(e)(3),
(b)comprises a beneficial interest in shares, or
(c)is treated as earnings within the meaning of Part 7 of the Income Tax (Earnings and Pensions) Act 2003(4),
sub-paragraph (5B) applies.
(5B) If this sub-paragraph applies—
(a)sub-paragraph (5)(a) shall have effect as if “, but not in excess of,” were omitted; and
(b)sub-paragraph (8)(5) shall have effect as if at the end there were added “or the following year””.
Sub-paragraph (3) was substituted by regulation 7(3) of S.I. 2002/2929.
Sub-paragraph (5) was amended by regulation 7(5) of S.I. 2002/2929.
Sub-paragraph (4)(e) was inserted by regulation 7(4) of S.I. 2002/2929.
Sub-paragraph (8) was substituted by regulation 7(7) of S.I. 2002/2929.