(This note is not part of the Regulations)
These Regulations amend the Social Security (Contributions) Regulations 2001 (S.I. 2001/1004: “the principal Regulations”).
Regulation 1 provides for the citation and commencement of these Regulations, and for interpretation.
Regulation 2 introduces the amendments to the principal Regulations.
Regulation 3 amends Schedule 2 to the principal Regulations by inserting a new paragraph 11A. This provides a method of valuing the amount of earnings comprised in the acquisition of shares where their value, or that of an option by means of which they have been acquired, has been increased by things done otherwise than for genuine commercial purposes. It also makes consequential amendments to Schedule 2.
Regulation 4 amends Part 9 of Schedule 3 to the principal Regulations, amending paragraph 16 of that Part and adding a new paragraph. The effect of these amendments is that, on or after 10th April 2003, earnings arising from a payment by way of a gain realised by the exercise, assignment or release of a right obtained before 6th April 1999 to acquire shares, and which would otherwise be disregarded by paragraph 16, will not be disregarded if the market value of the shares, or that of any right by reason of which they have been acquired, is increased by more than 10% by things done, on or after 6th April 1999, otherwise than for genuine commercial purposes.