Amendments to the Finance (No. 2) Act 20055.

(1)

Section 7 of the Finance (No. 2) Act 20059 is amended as follows.

(2)

In subsection (5A)10 (charge to income tax on lump sum)—

(a)

omit paragraph (b), and

(b)

in paragraph (c)—

(i)

for “exceeds the Scottish basic rate limit for that year” substitute “is greater than nil”, and

(ii)

for “applicable to P” substitute “applicable to P’s Step 3 income for that year”.