(1)In this Chapter—
“employment” means an office or employment whose emoluments fall to be assessed under Schedule E, and related expressions have corresponding meanings;
“employment unit” means an undertaking, or that part of an undertaking, to which a profit-related pay scheme relates;
“pay” (except in the expression “profit-related pay”) means emoluments paid under deduction of tax pursuant to section 204 of the Taxes Act (pay as you earn), reduced by any amounts included in them by virtue of Chapter II of Part III of the [1976 c. 40.] Finance Act 1976;
“profit period” means an accounting period by reference to which any profit-related pay is calculated;
“profit-related pay” means emoluments from an employment which are paid in accordance with a profit-related pay scheme;
“profit-related pay scheme” means a scheme providing for the payment of emoluments calculated by reference to profits;
“profits” or “losses”, in relation to a profit period, means the amount shown in the account prepared for that period in accordance with the relevant profit-related pay scheme as the profit, or as the case may be the loss, on ordinary activities after taxation;
“registered scheme” means a profit-related pay scheme registered under this Chapter;
“scheme employer” means the person on whose application a profit-related pay scheme is or may be registered under this Chapter.
(2)References in this Chapter to the employees to whom a profit-related pay scheme relates are references to the employees who will receive any payments of profit-related pay under the scheme.