(7) The Treasury may by regulations provide that, in relation to an age
group specified in the table, there is to be for every tax year an upper
secondary threshold for secondary Class 1 contributions.

That threshold is to be the amount specified for that year by regulations
5made by the Treasury.

That threshold is to be the amount specified for that year by regulations
made by the Treasury.

(8) Subsections (4) and (5) of section 5 above (which confer power to
prescribe an equivalent of a secondary threshold in relation to earners
10paid otherwise than weekly), and subsection (6) of that section as it
applies for the purposes of those subsections, apply for the purposes of
an upper secondary threshold in relation to an age group as they apply
for the purposes of a secondary threshold.

(9) Where—

(a) 15a secondary Class 1 contribution is payable as mentioned in
section 6(1)(b) above,

(b) the earner falls within an age group in relation to which
provision has been made under subsection (7), and

(c) the earnings paid in the tax week, in respect of the employment
20in question, exceed the current upper secondary threshold (or
the prescribed equivalent) in relation to the age group,

this section is not to apply to the earnings so far as they exceed that
threshold (or the prescribed equivalent); and for the purposes of section
9(1) above the relevant percentage in respect of the earnings so far as
25they exceed that threshold (or the prescribed equivalent) is,
accordingly, to be the secondary percentage.

(10) In subsections (7) to (9) references to an age group include a part of an
age group.”

(9) In section 121(1) (interpretation of Parts 1 to 6), at the appropriate place
30insert—

• ““age-related secondary percentage” is to be construed in
  accordance with section 9A(2) above;”.

(10) In section 172(11A) (parliamentary control: instruments subject to affirmative
procedure) after “4C,” insert “9A(7),”.

(11) 35The following come into force at the end of the period of 2 months beginning
with the day on which this Act is passed—

(a) any power conferred on the Treasury by virtue of this section to make
regulations, and

(b) the amendments made by subsections (5) and (10).

(12) 40So far as not already brought into force by subsection (11), the amendments
made by this section come into force on 6 April 2015.

Application of general anti-abuse rule to national insurance contributions

10 GAAR to apply to national insurance contributions

(1) In Part 5 of the Finance Act 2013 (general anti-abuse rule)—

(a) 45references to tax, other than in references to particular taxes, include
national insurance contributions, and

(b) references to a charge to tax include a liability to pay national insurance
contributions.

(2) Section 206(3) of that Act (list of taxes to which the general anti-abuse rule
applies) has effect as if it included a reference to national insurance
5contributions.

(3) Section 207 of that Act (meaning of “tax arrangements” and “abusive”) has
effect as if, in subsection (4)(a), after “income,” there were inserted “earnings
(within the meaning of Part 1 of the Social Security Contributions and Benefits
Act 1992 or Part 1 of the Social Security Contributions and Benefits (Northern
10Ireland) Act 1992),”.

(4) Adjustments to be made in respect of national insurance contributions under
section 209 of the Finance Act 2013 (counteracting the tax advantages) may be
made by a notice given under paragraph 12 of Schedule 43 to that Act (notice
of final decision).

(5) 15For the purposes of section 210 of that Act (consequential relieving
adjustments)—

(a) if a claim under that section relates to Class 4 national insurance
contributions, Schedule 1A to the Taxes Management Act 1970 (as that
Schedule applies in relation to such contributions) applies to it, and

(b) 20if a claim under that section relates to any other class of national
insurance contributions, it must be made in such form and manner, and
contain such information, as HMRC may require.

(6) Adjustments to be made in respect of national insurance contributions under
that section may be made by a notice given under subsection (7) of that section.

(7) 25This section has effect in relation to tax arrangements (within the meaning of
Part 5 of the Finance Act 2013 as modified by this section) entered into on or
after the day on which this Act is passed.

(8) Subsections (9) and (10) apply where the tax arrangements—

(a) would not have been tax arrangements but for the modifications made
30by this section, and

(b) form part of other arrangements entered into before the day on which
this Act is passed.

(9) The other arrangements are to be ignored for the purposes of section 207(3) of
the Finance Act 2013, subject to subsection (10).

(10) 35Account is to be taken of the other arrangements for the purposes of that
section if, as a result, the tax arrangements would not be abusive.

(11) In this section—

• “abusive”, “arrangements” and “HMRC” have the same meaning as in
  Part 5 of the Finance Act 2013;

• 40“national insurance contributions” means contributions under either Part
  1 of SSCBA 1992 or Part 1 of SSCB(NI)A 1992.

11 Power to modify application of GAAR to national insurance contributions

(1) Where a modification is made to Part 5 of the Finance Act 2013 (general anti-
abuse rule) that does not apply in relation to national insurance contributions
45(“the tax only modification”), the Treasury may by regulations—

(a) make provision for the purpose of applying the tax only modification
in relation to national insurance contributions (with or without
modifications),

(b) make provision in relation to national insurance contributions
5corresponding to the tax only modification, or

(c) otherwise modify the general anti-abuse rule, as it has effect in relation
to national insurance contributions, in consequence of, or for the
purpose of making provision supplementary or incidental to, the tax
only modification.

(2) 10Regulations under this section—

(a) may amend, repeal or revoke any provision of an Act or instrument
made under an Act (whenever passed or made),

(b) may make consequential, incidental, supplementary, transitional,
transitory or saving provision, and

(c) 15may make different provision for different cases, classes of national
insurance contributions or purposes.

(3) Regulations under this section must be made by statutory instrument.

(4) A statutory instrument containing (with or without other provision)
regulations under this section that amend or repeal a provision of an Act may
20not be made unless a draft has been laid before, and approved by a resolution
of, each House of Parliament.

(5) A statutory instrument containing regulations under this section that does not
have to be approved in draft under subsection (4) is subject to annulment in
pursuance of a resolution of either House of Parliament.

(6) 25In this section—

• “general anti-abuse rule” has the same meaning as in Part 5 of the Finance
  Act 2013;

• “national insurance contributions” means contributions under either Part
  1 of SSCBA 1992 or Part 1 of SSCB(NI)A 1992.

30Oil and gas workers on the continental shelf

12 Oil and gas workers on the continental shelf: secondary contributors etc

(1) Section 120 of SSCBA 1992 (employment at sea: continental shelf operations) is
amended as follows.

(2) In subsection (1), after “persons” insert “(“continental shelf workers”)”.

(3) 35In subsection (3)—

(a) for “the regulations” substitute “regulations under subsection (1)”, and

(b) for “such person” substitute “continental shelf worker”.

(4) After that subsection insert—

“(4) The Treasury may also, by regulations, make provision for, and in
40connection with, the issue by Her Majesty’s Revenue and Customs of
certificates to prescribed persons who are, by virtue of regulations
under subsection (1), to be treated as the secondary contributor in
relation to the payment of earnings to or for the benefit of one or more
continental shelf workers—

(a) confirming that the prescribed person’s liabilities to pay
contributions in respect of the continental shelf workers
specified or described in the certificate are being met by another
person, and

(b) 5discharging the prescribed person, while the certificate is in
force, from liability to make any payments in respect of the
contributions, in the event that the other person fails to pay
them in full.

(5) Regulations under subsection (4) may, in particular, make provision
10about—

(a) applying for a certificate;

(b) the circumstances in which a certificate may, or must, be issued
or cancelled;

(c) the form and content of a certificate;

(d) 15the effect of a certificate (including provision modifying the
effect mentioned in subsection (4)(b) or specifying further
effects);

(e) the effect of cancelling a certificate.”

Partnerships

13 20Class 4 contributions: partnerships

(1) SSCBA 1992 is amended as follows.

(2) After section 18 insert—

“18A Class 4 contributions: partnerships

(1) The Treasury may by regulations—

(a) 25modify the way in which liabilities for Class 4 contributions of
a partner in a firm are determined, or

(b) otherwise modify the law relating to Class 4 contributions,

as they consider appropriate to take account of the passing or making
of a provision of the Income Tax Acts relating to firms or partners in
30firms.

(2) “Firm” has the same meaning as in the Income Tax (Trading and Other
Income) Act 2005 (and includes a limited liability partnership in
relation to which section 863(1) of that Act applies); and “partner” is to
be read accordingly and includes a former partner.

(3) 35Regulations under this section may have retrospective effect; but they
may not have effect before the beginning of the tax year in which they
are made.”

(3) In section 176(1)(a) (parliamentary control: instruments subject to affirmative
procedure), after “section 18;” insert—

“(None) 40section 18A;”.

(4) SSCB(NI)A 1992 is amended as follows.

(5) After section 18 insert—

“18A Class 4 contributions: partnerships

(1) The Treasury may by regulations—

(a) modify the way in which liabilities for Class 4 contributions of
5a partner in a firm are determined, or

(b) otherwise modify the law relating to Class 4 contributions,

as they consider appropriate to take account of the passing or making
of a provision of the Income Tax Acts relating to firms or partners in
firms.

(2) 10“Firm” has the same meaning as in the Income Tax (Trading and Other
Income) Act 2005 (and includes a limited liability partnership in
relation to which section 863(1) of that Act applies); and “partner” is to
be read accordingly and includes a former partner.

(3) Regulations under this section may have retrospective effect; but they
15may not have effect before the beginning of the tax year in which they
are made.”

(6) In section 172(11A) (parliamentary control: instruments subject to affirmative
procedure), after “18,” insert “18A,”.

(7) The amendments made by this section come into force at the end of the period
20of 2 months beginning with the day on which this Act is passed.

14 Limited liability partnerships

(1) SSCBA 1992 is amended as follows.

(2) After section 4A insert—

“4AA Limited liability partnerships

(1) 25The Treasury may, for the purposes of this Act, by regulations—

(a) provide that, in prescribed circumstances—

(i) a person (“E”) is to be treated as employed in employed
earner’s employment by a limited liability partnership
(including where E is a member of the partnership), and

(ii) 30the limited liability partnership is to be treated as the
secondary contributor in relation to any payment of
earnings to or for the benefit of E as the employed
earner;

(b) prescribe how earnings in respect of E’s employed earner
35employment with the limited liability partnership are to be
determined (including what constitutes such earnings);

(c) provide that such earnings are to be treated as being paid to or
for the benefit of E at prescribed times.

(2) Regulations under subsection (1) may modify the definition of
40“employee” or “employer” in section 163, 171, 171ZJ or 171ZS below as
the Treasury consider appropriate to take account of any provision
falling within subsection (1)(a) to (c).

(3) If—

(a) a provision of the Income Tax Acts relating to limited liability
partnerships or members of limited liability partnerships is
passed or made, and

(b) in consequence, the Treasury consider it appropriate for
5provision to be made for the purpose of assimilating to any
extent the law relating to income tax and the law relating to
contributions under this Part,

the Treasury may by regulations make that provision.

(4) The provision that may be made under subsection (3) includes
10provision modifying any provision made by or under this Act.

(5) Regulations under this section are to be made with the concurrence of
the Secretary of State.

(6) Section 4(4) of the Limited Liability Partnerships Act 2000 does not
limit the provision that may be made by regulations under this
15section.”

(3) In section 4B (power to make retrospective provision in consequence of
retrospective tax legislation), in subsection (3), after paragraph (c) insert—

“(d) section 4AA (power to make provision in relation to limited
liability partnerships)”.

(4) 20In section 10 (Class 1A contributions: benefits in kind etc), at the end, insert—

“(11) The Treasury may by regulations modify the law relating to Class 1A
contributions in the case of an employed earner’s employment which is
treated as existing by virtue of regulations under section 4AA.”

(5) SSCB(NI)A 1992 is amended as follows.

(6) 25After section 4A insert—

“4AA Limited liability partnerships

(1) The Treasury may, for the purposes of this Act, by regulations—

(a) provide that, in prescribed circumstances—

(i) a person (“E”) is to be treated as employed in employed
30earner’s employment by a limited liability partnership
(including where E is a member of the partnership), and

(ii) the limited liability partnership is to be treated as the
secondary contributor in relation to any payment of
earnings to or for the benefit of E as the employed
35earner;

(b) prescribe how earnings in respect of E’s employed earner
employment with the limited liability partnership are to be
determined (including what constitutes such earnings);

(c) provide that such earnings are to be treated as being paid to or
40for the benefit of E at prescribed times.

(2) Regulations under subsection (1) may modify the definition of
“employee” or “employer” in section 159, 167, 167ZJ or 167ZS below as
the Treasury consider appropriate to take account of any provision
falling within subsection (1)(a) to (c).

(3) 45If—

(a) a provision of the Income Tax Acts relating to limited liability
partnerships or members of limited liability partnerships is
passed or made, and

(b) in consequence, the Treasury consider it appropriate for
5provision to be made for the purpose of assimilating to any
extent the law relating to income tax and the law relating to
contributions under this Part,

the Treasury may by regulations make that provision.

(4) The provision that may be made under subsection (3) includes
10provision modifying any provision made by or under this Act.

(5) Regulations under this section are to be made with the concurrence of
the Department.

(6) Section 4(4) of the Limited Liability Partnerships Act 2000 does not
limit the provision that may be made by regulations under this
15section.”

(7) In section 4B (power to make retrospective provision in consequence of
retrospective tax legislation), in subsection (3), after paragraph (c) insert—

“(d) section 4AA (power to make provision in relation to limited
liability partnerships)”.

(8) 20In section 10 (Class 1A contributions: benefits in kind etc), at the end, insert—

“(11) The Treasury may by regulations modify the law relating to Class 1A
contributions in the case of an employed earner’s employment which is
treated as existing by virtue of regulations under section 4AA.”

Other provision

15 25Office holders who receive “earnings” to be employed earners

(1) In section 2(1)(a) of SSCBA 1992 (definition of “employed earner”), omit
“general”.

(2) In section 2(1)(a) of SSCB(NI)A 1992 (definition of “employed earner”), omit
“general”.

(3) 30Schedule 2 makes provision that is consequential upon office holders in receipt
of “earnings” (as opposed to “general earnings”) being employed earners.

(4) The amendments made by this section and Schedule 2 come into force at the
end of the period of 2 months beginning with the day on which this Act is
passed.

16 35Armed Forces early departure payments retrospectively disregarded

Paragraph 10A of Part 6 of Schedule 3 to the Social Security (Contributions)
Regulations 2001 (S.I. 2001/1004S.I. 2001/1004) (payments under the Armed Forces Early
Departure Payments Scheme Order 2005 (S.I. 2005/437S.I. 2005/437) to be disregarded) also
has effect for the tax years 2005-06 to 2012-13 inclusive.

17 40Repeal of certain redundant reliefs relating to Class 4 contributions

(1) In Schedule 2 to SSCBA 1992 (levy of Class 4 contributions with income tax)—

(a) omit paragraph 3(3), and

(b) omit paragraph 9 (and the heading immediately before it).

(2) In Schedule 2 to SSCB(NI)A 1992 (levy of Class 4 contributions with income
tax)—

(a) 5omit paragraph 3(3), and

(b) omit paragraph 9 (and the heading immediately before it).

(3) The amendments made by subsections (1)(a) and (2)(a) have effect for the tax
year after the one during which this Act is passed and for subsequent tax years.

18 Certain orders and regulations in respect of Northern Ireland

(1) 10Section 172 of SSCB(NI)A 1992 (Assembly etc control of regulations and
orders) is amended as follows.

(2) In subsection (11), for “(9)” substitute “(10)”.

(3) In subsection (11B)—

(a) after “contains” insert “—

(a)”,

(b) after “129” insert “or 142(7)”, and

(c) after “Act” insert “,

(b) regulations under powers conferred by any provision
mentioned in that subsection which are to be made for
20the purpose of consolidating regulations to be revoked
in the instrument, or

(c) regulations which, in so far as they are made under
powers conferred by any provision mentioned in that
subsection, only replace provisions of previous
25regulations with new provisions to the same effect.”

(4) Section 165 of the Social Security Administration (Northern Ireland) Act 1992
(regulations and orders — general) is amended as follows.

(5) In subsection (1), after “to be made by” insert “the Secretary of State,”.

(6) In subsection (3), after “the Department” insert “, the Secretary of State”.

(7) 30The amendments made by this section come into force at the end of the period
of 2 months beginning with the day on which this Act is passed.

General

19 HMRC administrative expenses: financial provision

(1) In section 165 of the Social Security Administration Act 1992 (adjustments
35between the National Insurance Fund and Consolidated Fund), in subsection
(5)(a), after “adoption pay” insert “or the National Insurance Contributions Act
2014”.

(2) In section 145 of the Social Security Administration (Northern Ireland) Act
1992 (adjustments between the National Insurance Fund and Consolidated
40Fund), in subsection (5)(a), after “adoption pay” insert “or the National
Insurance Contributions Act 2014”.

20 Abbreviations of Acts

In this Act—

• “SSCBA 1992” means the Social Security Contributions and Benefits Act
  1992;

• 5“SSCB(NI)A 1992” means the Social Security Contributions and Benefits
  (Northern Ireland) Act 1992.

21 Short title and extent

(1) This Act may be cited as the National Insurance Contributions Act 2014.

(2) Subject to subsection (3), this Act extends to England and Wales, Scotland and
10Northern Ireland.

(3) An amendment or repeal made by this Act has the same extent as the provision
amended or repealed.

SCHEDULES

Section 3

SCHEDULE 1 Employment allowance: rules for determining if persons are “connected”

Part 1 5Companies

Application

1 This Part applies for the purposes of section 3(1).

The basic rule

2 (1) Two companies are “connected” with one another if—

(a) 10one of the two has control of the other, or

(b) both are under the control of the same person or persons.

(2) In sub-paragraph (1) “control” has the same meaning as in Part 10 of CTA
2010 (see sections 450 and 451 of that Act) (and a limited liability partnership
is to be treated as a company for the purposes of that Part as applied by this
15sub-paragraph).

(3) For this purpose, where under section 450 of that Act “C” is a limited liability
partnership, subsection (3) of that section has effect as if before paragraph (a)
there were inserted—

“(za) rights to a share of more than half the assets, or of more than
20half the income, of C,”.

(4) Sub-paragraphs (1) to (3) are subject to paragraphs 3 to 6.

(5) Paragraph 7 provides for further connections.

(6) In this Part “CTA 2010” means the Corporation Tax Act 2010.

Companies whose relationship is not one of substantial commercial interdependence

3 (1) 25This paragraph applies for the purpose of determining under paragraph 2(1)
if two companies are connected with one another if the relationship between
the companies is not one of substantial commercial interdependence.

(2) In the application of section 451 of CTA 2010 for the purposes of the
determination, any person to whom rights and duties fall to be attributed
30under subsections (4) and (5) of that section is to be treated, for the purposes
of those subsections, as having no associates.