(1) The Principal Act is amended in section 201 by inserting the following after subsection (7):

"(8)

(a) Notwithstanding the provisions of this section and Schedule 3, income tax shall be charged by virtue of section 123 on the amount of the lump sum which exceeds the lesser of -

(i) that part of the lump sum which, apart from this subsection, would be exempt from income tax by virtue of this section and Schedule 3, including any deduction in computing the charge to income tax under paragraph 6 of that Schedule, and

(ii) €200,000.

(b) The amount of €200,000 referred to in subparagraph (a)(ii) shall be reduced by an amount equal to the aggregate amounts exempted from income tax in respect of all payments to which section 123 applied which were paid before or at the same time as the payment of the lump sum, and shall include any deduction in computing the charge to income tax under paragraph 6 of Schedule 3.

(c) The amount determined in accordance with paragraphs (a) and (b) shall be determined without regard to subsections (1A) and (2).