(1)In section 56 of the [1978 c. 42.] Finance Act 1978 (capital receipts in respect of approved profit sharing schemes) in subsection (1)—
(a)after the words " trustees become ", in each place where they occur, there shall be inserted the words " or the participant becomes ";
(b)before the words " the amount or value " there shall be inserted the words " so much of "; and
(c)at the end there shall be added the words " as exceeds the appropriate allowance for that year, as determined under subsection (6) below ".
(2)For subsection (6) of that section there shall be substituted the following subsection—
“(6)For the purposes of subsection (1) above, the appropriate allowance for any year of assessment means a sum which, subject to a maximum of £140, is the product of multiplying £20 by 1 plus the number of years which fall within the period of 7 years immediately preceding the year in question and in which shares were appropriated to the participant under the scheme ; and if in any year (and before the release date) the trustees become or the participant becomes entitled, in respect of or by reference to any of his shares, to more than one capital receipt, the receipts shall be set against the appropriate allowance for that year in the order in which they are received.”
(3)In subsections (1) and (2) of section 58 of the [1978 c. 42.] Finance Act 1978 (shares in excess of initial market value of £1,000) for " £1,000 " there shall be substituted " £1,250 ".
(4)In paragraph 1(4) of Schedule 9 to that Act (profit sharing schemes to provide that total initial market values of shares appropriated to one participant yearly must not exceed £1,000) for " £1,000 " there shall be substituted " £1,250 ".
(5)Subsections (1) and (2) above apply to receipts to which the trustees become or the participant becomes entitled on or after the passing of this Act; subsection (3) above applies in relation to shares appropriated on or after 6th April 1982; and subsection (4) above shall be deemed to have come into force on that date.