Statutory Instruments
Income Tax
Made
24th February 2015
Laid before the House of Commons
25th February 2015
Coming into force
6th April 2015
The Treasury, in exercise of the powers conferred by section 52 of, and paragraphs 49 and 50 of Schedule 9 to, the Finance Act 2014(1), make the following Regulations:
1.—(1) These Regulations may be cited as the Finance Act 2014, Schedule 9 (Employment-related Securities etc.) (Consequential etc. Amendments) Regulations 2015.
(2) These Regulations come into force on 6th April 2015.
2. In section 431B of ITEPA 2003(2) (securities acquired for purpose of avoidance)—
(a)the words after “if” become paragraph (a), and
(b)at the end of that paragraph insert “, and” and then—
“(b)at the time of the acquisition, the earnings from the employment are (or would be if there were any) general earnings to which any of the charging provisions of Chapters 4 and 5 of Part 2 applies.”.
Harriett Baldwin
Gavin Barwell
Two of the Lords Commissioners of Her Majesty’s Treasury
24th February 2015
(This note is not part of the Regulations)
Part 1 of Schedule 9 to the Finance Act 2014 amends how employment related securities (“ERS”) acquired by internationally mobile workers are charged under Part 7 of the Income Tax (Earnings and Pensions) Act 2003 (“ITEPA”).
These Regulations use a power contained in Part 4 of Schedule 9 to the Finance Act 2014 to make a consequential amendment to section 431B ITEPA. The consequence of this amendment is that section 431B will only apply to ERS which are within the scope of UK earnings at the time of acquisition.
A Tax Information and Impact Note covering this instrument was published on 10th December 2013 alongside the draft Finance Bill 2014 and is available on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins. It remains an accurate summary of the impacts that apply to this instrument.
c.26.
The Income Tax (Earnings and Pensions) Act 2003 (c.1) (as defined by section 302 of the Finance Act 2004). Section 431B was inserted by section 12 of, and paragraph 7 of Schedule 2 to, the Finance (No.2) Act 2005 (c.22).