Search Legislation

National Insurance Contributions and Statutory Payments Act 2004

Status:

This is the original version (as it was originally enacted).

3Agreements and joint elections: Great Britain

This section has no associated Explanatory Notes

(1)Schedule 1 to the Social Security Contributions and Benefits Act 1992 (c. 4) (supplementary provisions relating to Class 1 contributions) is amended as follows.

(2)In paragraph 3A (restrictions on recovery of employer’s contributions)—

(a)in sub-paragraph (2) for “a gain” to the end substitute “relevant employment income of that earner.”, and

(b)after that sub-paragraph insert—

(2A)But an agreement in respect of relevant employment income is to be disregarded for the purposes of sub-paragraph (2) to the extent that it relates to relevant employment income which is employment income of the earner by virtue of Chapter 3A of Part 7 of ITEPA 2003 (employment income: securities with artificially depressed market value).

(2B)For the purposes of sub-paragraphs (2) and (2A) “relevant employment income”, in relation to the earner, means—

(a)an amount that counts as employment income of the earner under section 426 of ITEPA 2003 (restricted securities: charge on certain post-acquisition events),

(b)an amount that counts as employment income of the earner under section 438 of that Act (convertible securities: charge on certain post-acquisition events), or

(c)a gain that is treated as remuneration derived from the earner’s employment by virtue of section 4(4)(a) above.

(3)In paragraph 3B (transfer of liability to be borne by the earner)—

(a)in sub-paragraph (1), in paragraph (a)—

(i)for “share option gains by the earner” substitute “relevant employment income of the earner”, and

(ii)for “such gains” substitute “such income”,

(b)after that sub-paragraph insert—

(1A)In this paragraph “relevant employment income”, in relation to the earner, means—

(a)an amount that counts as employment income of the earner under section 426 of ITEPA 2003 (restricted securities: charge on certain post-acquisition events),

(b)an amount that counts as employment income of the earner under section 438 of that Act (convertible securities: charge on certain post-acquisition events), or

(c)a gain that is treated as remuneration derived from the earner’s employment by virtue of section 4(4)(a) above,

and references to contributions on relevant employment income are references to any secondary Class 1 contributions payable in respect of that income.,

(c)in sub-paragraph (2)(b) for “share option gains by the earner, or the part of them” substitute “relevant employment income of the earner, or the part of it”,

(d)in sub-paragraph (3) for “sub-paragraph (7)(b)” substitute “sub-paragraphs (7)(b) and (7B)”,

(e)in sub-paragraph (7)(b) for “on share option” to the end substitute on relevant employment income if—

(i)that income is within sub-paragraph (1A)(a) or (b) and the securities, or interest in securities, to which it relates were or was acquired after the withdrawal date, or

(ii)that income is within sub-paragraph (1A)(c) and the right to acquire securities to which it relates was acquired after that date.,

(f)after sub-paragraph (7) insert—

(7A)In sub-paragraph (7)(b) “the withdrawal date” means—

(a)the date on which notice of the withdrawal of the approval is given, or

(b)such later date as the Inland Revenue may specify in that notice.

(7B)An election is void for the purposes of sub-paragraph (1) to the extent that it relates to relevant employment income which is employment income of the earner by virtue of Chapter 3A of Part 7 of ITEPA 2003 (employment income: securities with artificially depressed market value).,

(g)for sub-paragraph (10) substitute—

(10)Subject to sub-paragraph (12) below, an election under sub-paragraph (1) above shall not apply to any contributions in respect of income which, before the election was made, counted as employment income for a tax year by virtue of Part 7 of ITEPA 2003., and

(h)omit sub-paragraph (13).

(4)The amendments made by this section have effect in relation to—

(a)agreements entered into after the date of commencement of this section which are in respect of post-commencement employment income, and

(b)elections made after that date.

(5)For the purposes of subsection (4), “post-commencement employment income” means income which is relevant employment income within paragraph 3A(2B) of Schedule 1 to the Social Security Contributions and Benefits Act 1992 (c. 4) which, after the date of commencement of this section, counts as employment income for a tax year by virtue of Part 7 of the Income Tax (Earnings and Pensions) Act 2003 (c. 1).

Back to top

Options/Help

Print Options

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

See additional information alongside the content

Show Explanatory Notes for Sections: Displays relevant parts of the explanatory notes interweaved within the legislation content.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources