10. Amendment of section 128 (tax treatment of directors of companies and employees granted rights to acquire shares or other assets) of Principal Act.
(1) Section 128 of the Principal Act is amended -
(a) by substituting the following for subsection (6):
(a) Subject to subsection (7), a person shall, in the case of a right granted by reason of the person's office or employment, be chargeable to tax under this section in respect of a gain realised by another person -
(i) if the right was granted to that other person,
(ii) if the other person acquired the right otherwise than by or under an assignment made by means of a bargain at arm's length,
(iii) if the 2 persons are connected persons at the time when the gain is realised, or
(iv) if the person benefits directly or indirectly from the exercise, assignment or release of the right by the other person;
but in a case within subparagraphs (ii), (iii), or (iv), the gain realised shall be treated as reduced by the amount of any gain realised by a previous holder on an assignment of the right.
(b) For the purposes of this subsection, a gain realised by another person shall include a gain realised on the exercise of a right by the person in respect of whose office or employment the right was granted, where that person exercises the right as nominee or bare trustee of the other person, or otherwise on behalf of the other person.",