Part IV Income Tax, Corporation Tax and Capital Gains Tax

Chapter IV Share Options, Profit Sharing and Employee Share Ownership

Profit sharing schemes

118 The appropriate allowance.

1

In section 186(12) of the Taxes Act 1988 (determination of the appropriate allowance for the purposes of the charge to tax on capital receipts by a participant in an approved profit sharing scheme)—

a

for “£100” there shall be substituted “ £60 ”; and

b

for “five years” there shall be substituted “ three years ”.

2

Subsection (1) above has effect for the year 1997-98 and subsequent years of assessment.