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

Made24th November 1998

Laid before Parliament25th November 1998

Coming into force25th November 1998

The Secretary of State for Social Security, in exercise of powers conferred by sections 3(2), 122(1) and 175(1) to (3) of the Social Security Contributions and Benefits Act 19921 and of all other powers enabling him in that behalf, after agreement by the Social Security Advisory Committee that proposals to make these Regulations should not be referred to it2, hereby makes the following Regulations:

Citation, commencement and interpretation1

1

These Regulations may be cited as the Social Security (Contributions) Amendment (No. 5) Regulations 1998 and shall come into force on 25th November 1998.

2

In these Regulations “the principal Regulations” means the Social Security (Contributions) Regulations 19793.

Amendment of regulation 18 of the principal Regulations2

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

a

after paragraph (2)4, 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 19885 or a local authority association within the meaning of section 5196 of that Act.

b

after paragraph (5)7, insert—

5A
Paragraph (4)8 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)9, 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.

Signed by authority of the Secretary of State for Social Security.

Stephen C. TimmsParliamentary Under-Secretary of State,Department of Social Security24th November 1998

(This note is not part of the Regulations)

These Regulations further amend the Social Security (Contributions) Regulations 1979 (“the principal Regulations”).

Regulation 2 amends regulation 18 of the principal Regulations by inserting new paragraphs. New paragraph (2A) provides that the provisions of paragraph (2) of regulation 18 of the principal Regulations shall apply to shares in a body corporate which are capable of being acquired pursuant to an option or a voucher exchangeable for such an option. New paragraph (2B) makes consequential provision for new paragraphs (2A), (5A) and (9A). New paragraph (5A) provides that the provisions of paragraph (4) of regulation 18 of the principal Regulations shall apply to shares in a body corporate which are capable of being acquired pursuant to an option or a voucher exchangeable for such an option. New paragraph (9A) excludes an option to acquire shares in a body corporate or a voucher exchangeable for such an option from the operation of paragraph (9) of regulation 18 of the principal Regulations.

These Regulations impose no costs on business.