Commentary on Sections Schedule 7: Transitionals and Savings Part 3: Employment income: earnings and benefits etc. treated as earnings Paragraph 29
3674.This paragraph ensures continuity of the law in respect of events prior to 6 April 2003.
3675.Sub-paragraphs (2)and (3)  provide the continuity of the law in the case of an acquisition of shares prior to 6 April 2003 which gave rise to a notional loan within section 162(1) of ICTA. The amount of the notional loan initially outstanding remains the amount under section 162(1) and is to be used to arrive at the amount of the notional loan outstanding at any subsequent time after 6 April 2003. in accordance with section 194(3).
3676.Sub-paragraph (4) translates the reference in section 195(3)(c) to “excluded employment” to the term “an employment to which Chapter 2 of Part 5 of ICTA applies” in the case of a notional loan which first arose before 6 April 2003.