(1) The Principal Act is amended in Part 18A -

(a) in section 531B by substituting the following for paragraph (a) of the Table to subsection (1):

"(a) The income described in this paragraph, to be known as 'relevant emoluments', is emoluments to which Chapter 4 of Part 42 applies or is applied -

(i) other than social welfare payments and similar type payments,

(ii) other than excluded emoluments,

(iii) disregarding expenses, in respect of which an employee may be entitled to relief from income tax, which fall within Regulation 10(3) of the PAYE Regulations,

(iv) having regard to any relief under section 201(5) (a) and paragraphs 6 and 8 of Schedule 3, and

(v) excluding emoluments of an individual who is resident in a territory with which arrangements have been made under subsection (1)(a)(i) or (1B)(a)(ii) of section 826 in relation to affording relief from double taxation, where those emoluments are the subject of a notification issued under section 984(1).",