Section 472D of the Principal Act is amended -

(a) in subsection (1), in paragraph (b) of the definition of "key employee", by substituting "whose emoluments" for "the emoluments",

(b) by substituting the following for subsection (2):

"(2)

(a) Where, as respects an accounting period, a relevant employer surrenders an amount under section 766(2A) for the benefit of a key employee, then subject to subsection (3), on the making of a claim, that employee shall be entitled for a tax year to have the income tax charged on his or her relevant emoluments for that tax year reduced by the amount surrendered.

(b) The tax year referred to in paragraph (a) is the tax year following the tax year during which the accounting period, referred to in that paragraph, of the relevant employer ends.

(c) Notwithstanding that, for the tax year for which a claim is made under this section, an employee is no longer a key employee of the company that surrendered an amount referred to in paragraph (a) but is an employee of that company, then he or she shall be entitled to have the income tax charged on emoluments from that company for that tax year reduced by the amount so referred to.",

(c) in subsection (3) -