(1)In sections 185 and 186, this section and Schedules 9 and 10 “the relevant provisions” means those sections (including this section) and Schedules.
(2)For the purposes of the relevant provisions, except where the context otherwise requires—
“appropriate percentage” shall be construed in accordance with paragraph 3 of Schedule 10;
“approved”, in relation to a scheme, means approved under Schedule 9;
“associated company” has the same meaning as in section 416, except that, for the purposes of paragraph 23 of Schedule 9, subsection (1) of that section shall have effect with the omission of the words “or at any time within one year previously”;
“bonus date” has the meaning given by paragraph 17 of Schedule 9;
“capital receipt” means money or money’s worth to which the trustees of or a participant in a profit sharing scheme become or becomes entitled as mentioned in section 186(3), but subject to paragraph 4 of Schedule 10;
“certified contractual savings scheme” has the meaning given by section 326;
“control” has the same meaning as in section 840;
“grantor”, in relation to any scheme, means the company which has established the scheme;
“group scheme” and, in relation to such a scheme, “participating company” have the meanings given by paragraph 1(3) and (4) of Schedule 9;
“initial market value”, in relation to shares in a profit sharing scheme, has the meaning given by paragraph 30(4) of Schedule 9;
“locked-in value”, in relation to any shares, shall be construed in accordance with section 186(5);
“market value” has the same meaning as in Part VIII of the 1979 Act;
“new holding” has the meaning given by section 77(1)(b) of the 1979 Act;
“participant”, in relation to a profit sharing scheme, means an individual to whom the trustees of the scheme have appropriated shares;
“participant’s shares”, in relation to a participant in a profit sharing scheme, means, subject to paragraph 5(4) of Schedule 10, shares which have been appropriated to the participant by the trustees;
“pensionable age” has the meaning given by Schedule 20 to the [1975 c. 14.] Social Security Act 1975;
“period of retention” has the meaning given by paragraph 2 of Schedule 10;
“release date”, in relation to any of the shares of a participant in a profit sharing scheme, means the fifth anniversary of the date on which they were appropriated to him;
“relevant amount”, in relation to a participant in a profit sharing scheme, means an amount which is not less than £1,250 and not more than £5,000 but which, subject to that, is 10 per cent. of his salary (determined under subsection (5) below) for the year of assessment in question or the preceding year of assessment, whichever is the greater;
“relevant requirements” has the meaning given by paragraph 1 of Schedule 9;
“savings-related share option scheme” has the meaning given by paragraph 1 of Schedule 9;
“scheme” means a savings-related share option scheme, a share option scheme which is not a savings-related share option scheme or a profit sharing scheme, as the context may require;
“shares” includes stock;
“the trustees”, in relation to an approved profit sharing scheme or the shares of a participant in such a scheme, means the body of persons for the establishment of which the scheme must provide as mentioned in paragraph 30 of Schedule 9; and
“the trust instrument”, in relation to an approved profit sharing scheme, means the instrument referred to in paragraph 30(1)(c) of Schedule 9.
(3)For the purposes of the application of the relevant provisions in relation to any share option scheme or profit sharing scheme, a person has a material interest in a company—
(a)if he, either on his own or with any one or more of his associates, or if any associate of his with or without any such other associates, is the beneficial owner of, or able, directly or through the medium of other companies or by any other indirect means, to control, more than 25 per cent., or in the case of a share option scheme which is not a savings-related share option scheme more than 10 per cent., of the ordinary share capital of the company; or
(b)if, on an amount equal to the whole distributable income of the company falling under Part XI to be apportioned for the purpose of computing total income, more than 25 per cent., or in the case of a share option scheme which is not a savings-related share option scheme more than 10 per cent., of that amount could be apportioned to him together with his associates (if any), or to any associate of his, or to any such associates taken together.
In this subsection “associate” has the meaning given by section 417(3) and (4).
(4)Subsection (3) above shall have effect subject to the provisions of Part VI of Schedule 9.
(5)For the purposes of subsection (2) above, a participant’s salary for a year of assessment means such of the emoluments of the office or employment by virtue of which he is entitled to participate in a profit sharing scheme as are liable to be paid in that year under deduction of tax pursuant to section 203 after deducting therefrom amounts included by virtue of Chapter II of this Part.
(6)Section 839 shall apply for the purposes of the relevant provisions.
(7)For the purposes of the relevant provisions a company is a member of a consortium owning another company if it is one of a number of companies which between them beneficially own not less than three-quarters of the other company’s ordinary share capital and each of which beneficially owns not less than one-twentieth of that capital.
(8)Where the disposal referred to in section 186(4) is made from a holding of shares which were appropriated to the participant at different times, then, in determining for the purposes of the relevant provisions—
(a)the initial market value and the locked-in value of each of those shares, and
(b)the percentage which is the appropriate percentage in relation to each of those shares,
the disposal shall be treated as being of shares which were appropriated earlier before those which were appropriated later.
(9)Any of the relevant provisions with respect to—
(a)the order in which any of a participant’s shares are to be treated as disposed of for the purposes of those provisions, or
(b)the shares in relation to which an event is to be treated as occurring for any such purpose,
shall have effect in relation to a profit sharing scheme notwithstanding any direction given to the trustees with respect to shares of a particular description or to shares appropriated to the participant at a particular time.
(10)In the relevant provisions “workers' cooperative” means a registered industrial and provident society, within the meaning of section 486, which is a cooperative society and the rules of which include provisions which secure—
(a)that the only persons who may be members of it are those who are employed by, or by a subsidiary of, the society and those who are the trustees of its profit sharing scheme; and
(b)that, subject to any provision about qualifications for membership which is from time to time made by the members of the society by reference to age, length of service or other factors of any description, all such persons may be members of the society;
and in this subsection “cooperative society” has the same meaning as in section 1 of the [1965 c. 12.] Industrial and Provident Societies Act 1965 or, as the case may be, the [1969 c. 24 (N.I.).] Industrial and Provident Societies Act (Northern Ireland) 1969.