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| Consequential changes to tax relief provisions. |
4. - (1) This section applies where-
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(a) a notice is given in accordance with section 1 of this Act in respect of any right; |
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(b) the person or one of the persons who gives that notice is a person who (apart from this Act) was liable, or would have become liable, by virtue of an election under paragraph 3B(1) of Schedule 1 to the Contributions and Benefits Act, to pay secondary Class 1 contributions in respect of any gain arising on the exercise, assignment or release of that right; and |
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(c) that person ("the earner") becomes liable to pay a special contribution under section 2 of this Act in respect of that right. |
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(2) Subject to subsection (3) of this section, section 187A of the Income and Corporation Taxes Act 1988 (relief for secondary Class 1 contributions payable by earners) shall have effect, and (where it would not otherwise be the case) be deemed always to have had effect-
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(a) as if the election mentioned in subsection (1)(b) of this section were in force, with the effect mentioned in subsection (1)(b) of that section, at any time when the earner becomes or became chargeable to tax on a gain realised on the exercise, assignment or release of the right, and |
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(b) as if the reference in subsection (2)(b) of that section to any liability that has become the earner's by virtue of that election included any liability of his, in consequence of the giving of the notice under section 1 of this Act, to pay a special contribution under section 2 of this Act. |
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(3) Nothing in section 187A of the Income and Corporation Taxes Act 1988 shall have the effect, or be deemed to have had the effect, of conferring any relief in respect of any liability which is prevented from arising, or is treated as not having arisen, by virtue of subsection (1)(a) or (b) or (4) of section 2 of this Act.
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(4) In section 203FB(6A) of the Income and Corporation Taxes Act 1988 (application of PAYE provisions) the reference to relief likely to be available under section 187A shall be treated as not including a reference to any relief available by virtue of this section in respect of liability to pay a special contribution under section 2 of this Act.
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| Interpretation. |
5. - (1) In this Act-
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"the Administration Act" means- |
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(a) in the application of this Act to Great Britain, the Social Security Administration Act 1992; and
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(b) in the application of this Act to Northern Ireland, the Social Security Administration (Northern Ireland) Act 1992;
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"the Contributions and Benefits Act" means- |
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(a) in the application of this Act to Great Britain, the Social Security Contributions and Benefits Act 1992; and
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(b) in the application of this Act to Northern Ireland, the Social Security Contributions and Benefits (Northern Ireland) Act 1992.
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(2) In this Act-
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(a) a reference to shares in a body corporate includes a reference to stock in that body corporate and to securities issued by that body corporate; |
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(b) a reference to the release of a right includes a reference to agreeing to a restriction of the exercise of the right; and |
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(c) references to the assignment or release of a right to acquire shares, and to gains realised on such an assignment or release, shall be construed as if subsection (8) of section 135 of the Income and Corporation Taxes Act 1988 applied for the purposes of this Act as it applies for the purposes of that section. |
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(3) A special contribution under section 2 shall be treated for the purposes of any provision made by or under any enactment-
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(a) as a contribution of a class provided for by the Contributions and Benefits Act; and |
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(b) as due at the end of the period of sixty days beginning with the day on which this Act is passed; |
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and any reference in Schedule 1 to that Act or in any of the provisions of the Administration Act to a Class 1A contribution shall have effect as if it included a reference to a special contribution under section 2 of this Act.
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(4) This Act shall be construed, and the provisions of the Contributions and Benefits Act shall have effect, as if this section were contained in Part I of that Act.
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| Short title and extent. |
6. - (1) This Act may be cited as the Social Security Contributions (Share Options) Act 2001.
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(2) This Act extends to Northern Ireland.
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