The Social Security (Contributions)Amendment (No. 5) Regulations 1998

Amendment of regulation 18 of the principal Regulations

2.  In regulation 18 of the principal Regulations (calculation of earnings)—

(a) after paragraph (2)(1), insert—

“(2A) Paragraph (2) of this regulation shall apply to shares in a body corporate which are capable of being acquired pursuant to an option, or a voucher capable of being exchanged for such an option, where those shares, that option or that voucher are a readily convertible asset.

(2B) For the purposes of paragraphs (2A), (5A) and (9A) of this regulation, “body corporate” includes—

(a) a body corporate constituted under the law of a country or territory outside the United Kingdom; and

(b) an unincorporated association wherever constituted,

but does not include a partnership, a local authority within the meaning of section 842A of the Income and Corporation Taxes Act 1988(2) or a local authority association within the meaning of section 519(3) of that Act.”;

(b) after paragraph (5)(4), insert—

“(5A) Paragraph (4)(5) of this regulation shall apply to shares in a body corporate which are capable of being acquired pursuant to an option, or a voucher capable of being exchanged for such an option, where those shares, that option or that voucher are a readily convertible asset.”;

(c) in paragraph (9)(6), for “The amount”, substitute “Subject to paragraphs (2A), (5A) and (9A) of this regulation, the amount”;

(d) after paragraph (9), insert—

“(9A) Paragraph (9) of this regulation does not apply to an option to acquire shares in a body corporate, or a voucher capable of being exchanged for such an option, where those shares, that option or that voucher are a readily convertible asset.”.

(1)

Paragraph (2) was added by regulation 2(3) of S.I.1991/2505 and amended by regulation 3(a) of S.I.1996/3031.

(2)

1988 c. 1. Section 842A was inserted by section 127(1) of the Finance Act 1990 (c. 29) and amended by section 117(1) of, and paragraph 57 of Schedule 13 to, the Local Government Finance Act 1992 (c. 14), section 93 of, and Part I of Schedule 9 to, the Police and Magistrates' Courts Act 1994 (c. 29), section 180 of, and paragraph 155 of Schedule 13 to, the Local Government etc. (Scotland) Act 1994 (c. 39) and section 134(1) of, and paragraph 53 of Schedule 9 to, the Police Act 1997 (c. 50).

(3)

Section 519 was amended by sections 127(3) and 132 of, and paragraph 5 of Schedule 18 and Part IV of Schedule 19 to, the Finance Act 1990.

(4)

Paragraph (5) was added by regulation 2(3) of S.I.1991/2505.

(5)

Paragraph (4) was added by regulation 2(3) of S.I.1991/2505.

(6)

Paragraph (9) was substituted by regulation 5(4) of S.I.1998/2211.