Schedule 8 to the Taxes Act (tax on payments for loss of employment etc.) shall have effect with the insertion at the beginning of paragraph 7 of the words " Subject to sub-paragraph (2) below " and with the addition, at the end of that paragraph, of the following: —

“(2)

In the case of a payment which exceeds £50,000, this paragraph applies as if it were a payment of £50,000 exactly.

7A

(1)

Subject to sub-paragraph (2) below, in the case of a payment which exceeds £50,000 and in respect of which tax is chargeable under section 187 of this Act, the following relief shall be allowed by way of deduction from the tax chargeable by virtue of that section, that is to say, there shall be ascertained—

(a)

the amount of tax which would be chargeable apart from this paragraph and paragraph 7 above in respect of the income of the holder or past holder of the office or employment for the chargeable period of which the payment is treated as income, and

(b)

the amount of tax which would be so chargeable if the amount of the payment had been £50,000 exactly,

and the amount to be deducted shall be one-quarter of the difference between the amount ascertained at (a) and the amount ascertained at (b).

(2)

In the case of a payment which exceeds £75,000, this paragraph applies as if it were a payment of £75,000 exactly.

(3)

Any relief allowed by virtue of this paragraph shall be in addition to that allowed by virtue of paragraph 7 above.”