Interest to be disregarded: residual interest under pension scheme or employees’ share scheme

(1) If shares in a company are held in trust for the purposes of a pension scheme
or an employees' share scheme, any residual interest that has not yet vested in
possession. is to be disregarded for the purposes of section 109.
(2) For purposes of this section, "residual interest" means a right of the company
or subsidiary to receive any of the trust property if—
(a) all the liabilities arising under the scheme have been satisfied or
provided for;
(b) the company or subsidiary ceases to participate in the scheme; or
(c) the trust property at any time exceeds what is necessary for satisfying
the liabilities arising or expected to arise under the scheme.
(3) In the subsection (2)—
(a) the reference to a right includes a right dependent on the exercise of a
discretion vested by the scheme in the trustee or another person; and
(b) the reference to liabilities arising under a scheme includes liabilities
that have resulted, or may result, from the exercise of any such
discretion.
(4) For the purposes of this section, a residual interest vests in possession—
(a) for the purpose of subsection (2)(a), when the relevant liabilities have
been satisfied or provided for, whether or not the amount of the
property receivable pursuant to the right is ascertained; and
(b) for the purpose of subsection (2)(b) or (c), when the company or
subsidiary becomes entitled to require the trustee to transfer any of
the property in accordance with the right.