National Insurance Contributions Act 2014

National Insurance Contributions Act 2014

2014 CHAPTER 7

Commentary on Sections

Section 11: Power to modify application of the GAAR to national insurance contributions

130. Subsection (1) provides that, where there has been a change to the GAAR that does not apply in relation to NICs (“the tax only modification”), the Treasury may make regulations to:

a)

apply the tax only changes to NICs with or without modification;

b)

make provision for NICs that corresponds to the tax only modification;

c)

make consequential changes to the GAAR in relation to its effect on NICs or changes that are supplementary or incidental to the tax only modification.

131. Subsection (2) makes further provision as to the regulations that may be made under this power. The regulations can amend other legislation, make consequential, incidental, supplementary, transitional, transitory or saving provision and make different provision for different cases, purposes or classes of NICs.

132. Subsection (3) requires the regulations to be made by statutory instrument.

133. Subsection (4) provides that a statutory instrument, containing with or without other provision, regulations that amend or repeal a provision of an Act must be laid in draft before, and approved by, each House of Parliament (“affirmative resolution”). Any other statutory instrument made under this section does not have to be approved in draft and is subject to annulment by resolution of either House ("negative resolution") – see subsection (5).

134. Subsection (6) defines “general anti-abuse rule” and “national insurance contributions”.