The Principal Act is amended -

(a) in section 118, by the substitution of the following subsection for subsection (5):

"(5) Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision for a director or employee, or for the director's or employee's spouse, civil partner, children or dependants, or for the children of the director's or employee's civil partner, of any -

(a) pension, annuity, lump sum or gratuity,

(b) contribution to a Personal Retirement Savings Account (within the meaning of Chapter 2A of Part 30), provided that contribution does not exceed the employer limit (within the meaning of section 787A),

(c) contribution to a PEPP (within the meaning of Chapter 2D of Part 30), provided that contribution does not exceed the employer limit (within the meaning of section 787V), or

(d) other like benefit to be given on the death or retirement of the director or employee.",

(b) in section 787A(1), by the insertion of the following definitions:

"'emoluments' has the same meaning as in Chapter 4 of Part 42;

'employer limit', in relation to a contribution by an employer to an employee's PRSA, means an amount not exceeding -