Vote Bundle Text (910125-02)

Amendments proposed to the Social Security Contributions (Share Options) Bill - continued	House of Commons

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Mr Howard Flight
Mr Peter Luff

Clause 3, page 5, line 10, leave out 'amount' and insert 'gain'.

Mr Howard Flight
Mr Peter Luff

Clause 3, page 5, line 11, leave out from 'right' to 'by' in line 12.

Mr Howard Flight
Mr Peter Luff

Clause 3, page 5, line 13, at end insert 'as determined by section 135(3)(a) of the Income and Corporation Taxes Act 1988'.

Mr Howard Flight
Mr Peter Luff

Clause 3, page 5, leave out lines 21 to 38 and insert—

'(7) For the purposes of this section shares in relation to any right ("the new right") constituting or comprised in the consideration for the assignment or release of another right ("the old right") are additional shares in the same proportion that any enhanced gain in that right bears to the entire gain in that gain immediately after the grant or acquisition of the new right.

(8) For the purposes of subsection (7) above

(a) the gain in the new right is the gain that would be chargeable to income tax under section 135 of the Income and Corporation Taxes Act 1988 on an immediate exercise of that right; and

(b) an enhanced gain is the amount by which the gain in the new right exceeds the gain that would have been chargeable to income tax under section 135 of the Income and Corporation Taxes Act 1988 on an exercise of the old right immediately prior to its assignment or release.'.

Mr Howard Flight
Mr Peter Luff

Clause 3, page 6, line 3, leave out 'passing' and insert 'coming into force'.

Mr Howard Flight
Mr Peter Luff

Clause 4, page 6, line 44, leave out 'or (4)'.

Mr Howard Flight
Mr Peter Luff

Clause 4, page 6, line 48, leave out 'not'.

Mr Howard Flight
Mr Peter Luff

Clause 4, page 7, line 2, at end add—

'(5) Where a person pays a special contribution pursuant to section 4 above then, as the case may be, that payment shall comprise either

(a) a deductible expense wholly and exclusively laid out or expended for the purposes of any trade, profession or vocation carried out by him; or

(b) a deductible expense of management of an investment company (where that person is an investment company); or

(c) an amount expended wholly, exclusively and necessarily in the performance of the duties of any office or employment held by him.'.

Mr Howard Flight
Mr Peter Luff

Clause 6, page 7, line 39, at end add—

'(3) This Act shall come into force on the day appointed in regulations made by the Inland Revenue pursuant to subsection (5) of section 1 above.'.

NEW CLAUSES

No liability to Class 1 contributions

Mr Howard Flight
Mr Peter Luff

NC1

To move the following Clause:—

'(1) Notwithstanding any other enactment, no liability to Class 1 contributions under the Contributions and Benefits Act shall lie in respect of the exercise of any relevant right, or any right to acquire shares granted or acquired in consideration of the assignment or release of a relevant right.

(2) In subsection (1) above a "relevant right" is a right to acquire shares in a body corporate, whether or not granted or acquired in consideration of the assignment or release of any other such right,

(a) which was granted or acquired after 5th April 1999;

(b) which was granted or acquired before 20th May 2000;

(c) which, on 7th November 2000, was not a readily convertible asset nor a right to acquire shares which were readily convertible assets.

(3) In this section "readily convertible assets" has the meaning given it in section 203F of the Income and Corporation Taxes Act 1988.'.

Automatic rights: notice under section 1 and payment under section 2

Mr Howard Flight
Mr Peter Luff

NC2

To move the following Clause:—

'(1) The appropriate notice under section 1 and the payment of the special contribution under section 2 shall be deemed to have occurred in respect of any automatic right on the coming into force of this Act.

(2) In subsection (1) above an "automatic right" is a right to acquire shares in a body corporate obtained after 5th April 1999 and before 20th May 2000 where, on 7th November 2000, the amount payable to acquire the shares which are the subject of that right was not manifestly less than the market value of those shares.

(3) In this section "market value" has the meaning given it in Part VIII of the Taxation of Chargeable Gains Act 1992.'.

Indemnity

Mr Howard Flight
Mr Peter Luff

NC3

To move the following Clause:—

'.—Notwithstanding any discrimination between the holders of rights to acquire shares introduced by this Act, no right of action against the Crown shall lie under the Human Rights Act 1998 as a result of the coming into force or operation of this Act.'.

Procedure when right to acquire ceases to be exercisable

Mr Howard Flight
Mr Peter Luff

NC4

To move the following Clause:—

'(1) Where a right to acquire shares has been the subject of a notice under section 1 above and the payment of a special contribution under section 2 above, and that right subsequently ceases to be exercisable to any extent then at the appropriate time an appropriate person may make a claim for the repayment of the appropriate amount.

(2) The procedure for making a claim under this section shall be governed by regulations made by the Inland Revenue pursuant to section 1(5) above.

(3) In this section

(a) the "appropriate amount" is the amount of the special contribution in question, reduced to take account of any tax relief (if any) given on the original payment of that special contribution, apportioned on a just and equitable basis agreed with the Inland Revenue to the extent that the right has ceased to be exercisable;

(b) the "appropriate person" is the person who paid the special contribution in question;

(c) the "appropriate time" is the period of twelve months commencing with the end of the year of assessment in which the right in question has ceased to be exercisable to any extent.'.

Proceedings under Financial Services and Markets Act 2000

Mr Howard Flight
Mr Peter Luff

NC5

To move the following Clause:—

'.—The service of any notice under section 1 above and the payment of any special contribution under section 2 above, or any decision to not serve any such notice or to not make any such payment shall not form all or part of the subject of any proceedings against any person under the Financial Services and Markets Act 2000.'.




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