2. In section 7(5A)(c) of the Finance (No. 2) Act 2005(1) (charge to income tax on lump sum) for the words after “that tax year that” substitute “would be applicable to an amount of income that is equal to P’s Step 3 income(2) for that year if such amount were wholly chargeable to income tax at Scottish rates”.
2005 c.22. Subsection (5A) was inserted by regulation 9 of S.I. 2017/468 and paragraph (c) was amended by article 5 of S.I. 2018/459.
“Step 3 income” is defined in s7(9) of the Finance (No. 2) Act 2005 by reference to the calculation of income tax liability in section 23 of the Income Tax Act 2007 (c. 3).