Part 7

Employment income: income and exemptions relating to securities
Chapter 6

... share incentive plans

PAYE

PAYE deductions to be made by trustees on shares ceasing to be subject to plan
511
1
This section applies if, as a result of any shares ceasing to be subject to a Schedule 2 SIP—
a
there is an amount that counts as employment income of a participant by virtue of the SIP code, and
b
condition A or B is met.
2
Condition A is that an officer of Revenue and Customs —
a
is of the opinion that it is impracticable for the employer company (within the meaning of section 510) to make a PAYE deduction, and
b
accordingly directs that this section is to apply.
3
Condition B is that there is no company that qualifies as the employer company (within the meaning of that section).
4
If this section applies—
a
section 510(2) does not apply, and
b
the trustees must make a PAYE deduction in respect of the taxable equivalent as if the participant were a former employee of the trustees.
5
The “taxable equivalent” means an amount equal to that mentioned in subsection (1).
6
If this section applies, section 689 (employee of non-UK employer) does not apply.
Pt. 7: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)
Words in s. 511(1) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 11, 89 (with Sch. 8 paras. 90-96)
Word in s. 511(2)(b) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 114(b); S.I. 2005/1126, art. 2(2)(h)
Words in Act substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 102(1); S.I. 2005/1126, art. 2(2)(h)
Pt. 7 heading substituted (with effect in accordance with Sch. 22 para. 2(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 2(1)
Word in Pt. 7 Ch. 6 title omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 2, 89 (with Sch. 8 paras. 90-96)
Word in s. 511(2)(a) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 114(a); S.I. 2005/1126, art. 2(2)(h)