S.C.G.
NOTICES OF AMENDMENTS
given up to and including
Thursday 25th January 2001
New Amendments handed in are marked thus *
STANDING COMMITTEE G
SOCIAL SECURITY CONTRIBUTIONS (SHARE OPTIONS) BILL
Mr Howard Flight
Mr Peter Luff
6
Clause 1, page 1, line 12, leave out 'sixty' and insert 'ninety-two'.
Mr Howard Flight
Mr Peter Luff
1
Clause 1, page 1, line 13, leave out 'is passed' and insert 'comes into force'.
Mr Howard Flight
Mr Peter Luff
10
Clause 1, page 2, line 11, after 'election', insert 'or any part of'.
Mr Howard Flight
Mr Peter Luff
11
Clause 1, page 2, line 15, after 'election', insert ', to the extent of that election'.
Mr Howard Flight
Mr Peter Luff
12
Clause 1, page 2, line 17, after 'force', insert ', or to the extent not covered by any such election'.
Mr Howard Flight
Mr Peter Luff
13
Clause 1, page 2, line 20, leave out from 'gain' to end of line 21.
Mr Stephen Timms
34
*Clause 1, page 2, line 35, at end insert—
'(6) For the purposes of this Act where, in the case of any right to acquire shares, the person entitled or (if there is more than one) each of the persons entitled to give a notice under this section in respect of that right is a person whose liability by virtue of the giving of such a notice to pay a special contribution under section 2 in respect of that right would be nil, that person or, as the case may be, each of those persons acting jointly shall be deemed—
(a) to have given such a notice in respect of that right in accordance with this section and immediately before the end of the period specified in subsection (1)(c);
(b) to have accompanied that notice with a notification to the Inland Revenue that the liability arising by virtue of that notice was nil; and
(c) to have given that notification in the belief that the facts reasonably ascertainable by him at the time at which he is deemed to have given it were grounds for giving it.'.
Mr Howard Flight
Mr Peter Luff
32
Clause 2, page 3, line 3, at end insert 'on the subsequent exercise, assignment or release of that right, or entitled to a repayment as directed by subsection (7) below'.
Mr Howard Flight
Mr Peter Luff
21
Clause 2, page 3, line 6, after '(a)', add 'not manifestly less than'.
Mr Howard Flight
Mr Peter Luff
22
Clause 2, page 3, line 20, leave out 'amount' and insert 'gain'.
Mr Howard Flight
Mr Peter Luff
23
Clause 2, page 3, line 21, leave out from 'release' to 'by' in line 22.
Mr Howard Flight
Mr Peter Luff
24
Clause 2, page 3, line 22, at end insert 'as determined by section 135(3)(a) of the Income and Corporation Taxes Act 1988'.
Mr Howard Flight
Mr Peter Luff
19
Clause 2, page 3, line 23, after '(5)', insert 'and subsection (5A)'.
Mr Howard Flight
Mr Peter Luff
7
Clause 2, page 3, line 26, leave out 'sixty' and insert 'ninety-two'.
Mr Howard Flight
Mr Peter Luff
33
Clause 2, page 3, line 27, leave out 'on which this Act is passed' and insert 'of the exercise, assignment or release of that right'.
Mr Howard Flight
Mr Peter Luff
2
Clause 2, page 3, line 27, leave out 'is passed' and insert 'comes into force'.
Mr Howard Flight
Mr Peter Luff
8
Clause 2, page 3, line 34, leave out 'sixty' and insert 'ninety-two'.
Mr Howard Flight
Mr Peter Luff
9
Clause 2, page 3, line 45, leave out 'sixty' and insert 'ninety-two',
Mr Howard Flight
Mr Peter Luff
20
Clause 2, page 3, line 46, at end insert—
'(5A) Where a person becomes liable to pay to the Inland Revenue a special contribution, subsection (4) shall not apply if the person has paid an amount in respect of the special contribution (such amount being the sum which the person believes on reasonable grounds to be owing by him to the Inland Revenue) but, prior to the expiry of the deadline mentioned in paragraph (b) of subsection (4), the Inland Revenue have neither confirmed nor agreed the amount of special contribution due.'.
Mr Howard Flight
Mr Peter Luff
31
Clause 2, page 3, line 46, at end insert—
'(5A) Unless the contrary can be shown, for the purposes of paragraph (c) of subsection (5) above, it shall be assumed that a person employed by a body corporate, or a person who is a body corporate, which is under the control of a body corporate resident outside the United Kingdom has a reasonable excuse.'.
Mr Howard Flight
Mr Peter Luff
3
Clause 2, page 4, line 6, leave out 'passing' and insert 'coming into force'.
Mr Howard Flight
Mr Peter Luff
14
Clause 3, page 4, line 15, leave out from beginning to end of line 15 on page 6 and insert—
'(1) In this section—
(a) an "original right" is a right to acquire shares in a body corporate granted after 5th April 1999 and before 20th May 2000 (and which includes a new right which is subsequently exchanged for a further new right);
(b) a "new right" is a right to acquire shares granted or acquired in consideration for the assignment or release of an original right (whether comprising all or part of the consideration for that assignment or release);
(c) a "parity exchange" occurs on the grant of a new right where the gain which could reasonably be expected to be made on the exercise of the relevant new right immediately after the grant or acquisition of that right, together with the value of any other consideration given for the assignment or release of the original right, is not manifestly less than the gain which could reasonably be expected to be made from the exercise of the original right immediately prior to the assignment or release of that right;
(d) an "enhanced exchange" occurs on the grant or acquisition of a new right where a parity exchange does not occur; and
(e) the gains which might be reasonably expected to be made on the exercise of a right to acquire shares shall be determined by section 135(3)(a) of the Income and Corporation Taxes Act 1988.
(2) On a parity exchange
(a) any notices made, or deemed to have been made, under this Act in respect of the original right shall be deemed to have been made in respect of the equivalent new right;
(b) any special contribution paid, or deemed to have been paid, under this Act in respect of the original right shall be deemed to have been paid in respect of the equivalent new right; and
(c) the Income and Corporation Taxes Act 1988 shall apply to the new right as they applied to the original right.
(3) On an enhanced exchange the new right shall be apportioned on a just and equitable basis agreed with the Inland Revenue into two rights, the first of which representing the new right which would have been granted or acquired as the result of a parity exchange (which shall be treated according to subsection (2) above) and the second of which representing the balance of the actual new right (which shall be treated under this Act and the Income and Corporation Taxes Act 1988 as if no notice had been made and no special contributions paid in respect of that right). On any subsequent partial exercise of the new right the second apportioned right shall be treated as having been exercised in priority to the first apportioned right.
(4) Where a new right is granted or acquired as a result of the change of control of a body corporate then a parity exchange shall be deemed to have occurred if the relative terms of the new right and equivalent original right correspond to the terms offered to the holders of shares in that body corporate ("control" being construed in accordance with section 840 of the Income and Corporation Taxes Act 1988).
(5) Where prior to the coming into force of this Act payments have been made in respect of Class 1 contributions due on the exercise of any new right, then on a claim being made by the person who paid them all such repayments of those contributions shall be made, less any amount representing the special contributions which would be due under section 2 above.'.
Mr Howard Flight
Mr Peter Luff
25
Clause 3, page 5, line 6, leave out 'amount' and insert 'gain'.
Mr Howard Flight
Mr Peter Luff
26
Clause 3, page 5, line 7, leave out from 'release' to 'by' in line 8.
Mr Howard Flight
Mr Peter Luff
27
Clause 3, page 5, line 9, at end insert 'as determined by section 135(3)(a) of the Income and Corporation Taxes Act 1988'.
