Part 7

Employment income: share-related income and exemptions
Chapter 6

Approved 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 an approved 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 the Inland Revenue—
a
are 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 direct 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.