SCHEDULE 6 continued PART 2 continued
257 For section 95 of the Finance Act 2001 (exemptions in relation to employee share ownership plans) substitute—
(1) This section forms part of the SIP code (see section 488 of the Income Tax (Earnings and Pensions) Act 2003 (approved share incentive plans)).
(2) Accordingly, expressions used in this section and contained in the index at the end of Schedule 2 to that Act (approved share incentive plans) have the meaning indicated by that index.
(3) Where, under an approved share incentive plan, partnership shares or dividend shares are transferred by the trustees to an employee—
(a) no ad valorem stamp duty is chargeable on any instrument by which the transfer is made, and
(b) no stamp duty reserve tax is chargeable on any agreement by the trustees to make the transfer.
(4) But subsection (3) does not apply to—
(a) any instrument executed (within the meaning of the Stamp Act 1891) before 6th April 2003, or
(b) any agreement to transfer shares made before that date.”
258 (1) In Schedule 22 (remediation of contaminated land), amend paragraph 5 as follows.
(2) For sub-paragraph (1)(a) substitute—
“(a) the earnings paid by the company to directors or employees of the company;”.
(3) After sub-paragraph (1) insert—
“(1A) In sub-paragraph (1)(a) “earnings” means earnings or amounts treated as earnings which constitute employment income (see section 7(2)(a) or (b) of the Income Tax (Earnings and Pensions) Act 2003).”
259 The Social Security Contributions (Share Options) Act 2001 is amended as follows.
260 In section 2(3)(b) (effect of notice under section 1) for “section 135(3)(a) of the Income and Corporation Taxes Act 1988” substitute “section 479 of the Income Tax (Earnings and Pensions) Act 2003”.
261 (1) Amend section 3 (special provision for roll-overs) as follows.
(2) In subsection (4)(a) for “section 136(1) of the Income and Corporation Taxes Act 1988” substitute “section 485(1) to (4) of the Income Tax (Earnings and Pensions) Act 2003”.
(3) In subsection (4)(b)(i) for “section 135(3)(a)” substitute “section 479”.
(4) For subsection (6) substitute—
“(6) Subject to subsection (7), in relation to the replacement right or any subsequent right, section 485(1) to (3) of the Income Tax (Earnings and Pensions) Act 2003 (application of Chapter 5 of Part 7 where share option exchanged for another) shall be deemed to have effect (or, as the case may be, to have had effect) for the purposes of the determination mentioned in subsection (5) of this section—
(a) as if that section had effect (or, as the case may be, had had effect) in relation to that right to the extent only that it is a right to acquire additional shares; and
(b) as if the value of the consideration for the grant of the original right had been nil.”
(5) In subsection (7)(b) for “section 135 of the Income and Corporation Taxes Act 1988” substitute “Chapter 5 of Part 7 of the Income Tax (Earnings and Pensions) Act 2003”.
(6) In subsection (11)(a) for “section 135(3)(a) of the Income and Corporation Taxes Act 1988” substitute “section 479 of the Income Tax (Earnings and Pensions) Act 2003”.
262 In section 5(2)(c) (interpretation)—
(a) for “subsection (8) of section 135 of the Income and Corporation Taxes Act 1988 (c. 1)” substitute “section 483(1) of the Income Tax (Earnings and Pensions) Act 2003”; and
(b) for “that section” substitute “Chapter 5 of Part 7 of that Act”.
263 (1) Section 17(1) of the State Pension Credit Act 2002 (other interpretation provisions) is amended as follows.
(2) In paragraph (b) of the definition of “foreign war disablement pension” for “subsection (1) of section 315 of the Income and Corporation Taxes Act 1988 (c. 1)” substitute “section 641 of the Income Tax (Earnings and Pensions) Act 2003”.
(3) In paragraph (b) of the definition of “foreign war widow’s or widower’s pension” for “section 315(2)(e) of the Income and Corporation Taxes Act 1988” substitute “section 641(1)(e) or (f) of the Income Tax (Earnings and Pensions) Act 2003”.
(4) In paragraph (b) of the definition of “war disablement pension”, for “subsection (1) of section 315 of the Income and Corporation Taxes Act 1988 (c. 1)” substitute “any of paragraphs (a) to (f) of section 641(1) of the Income Tax (Earnings and Pensions) Act 2003”.
(5) In paragraph (b) of the definition of “war widow’s or widower’s pension” for “section 315(2)(e) of the Income and Corporation Taxes Act 1988” substitute “section 641(1)(e) or (f) of the Income Tax (Earnings and Pensions) Act 2003”.
264 The Tax Credits Act 2002 is amended as follows.
265 (1) Amend section 25 (payments of working tax credit by employers) as follows.
(2) In subsection (1) for “Schedule E payments” substitute “payments of, or on account of, PAYE income”.
(3) In subsection (5) for “Schedule E payment” substitute “payment of, or on account of, PAYE income”.
(4) Omit subsection (6).
266 In section 29(5) (recovery of overpayments) for “regulations under section 203(2)(a) of the Income and Corporation Taxes Act 1988 (c. 1) (PAYE)” substitute “PAYE regulations”.
267 (1) Section 17(1) of the State Pension Credit Act (Northern Ireland) 2002 (other interpretation provisions) is amended as follows.
(2) In paragraph (b) of the definition of “foreign war disablement pension” for “subsection (1) of section 315 of the Income and Corporation Taxes Act 1988 (c. 1)” substitute “section 641 of the Income Tax (Earnings and Pensions) Act 2003”.
(3) In paragraph (b) of the definition of “foreign war widow’s or widower’s pension” for “section 315(2)(e) of the Income and Corporation Taxes Act 1988” substitute “section 641(1)(e) or (f) of the Income Tax (Earnings and Pensions) Act 2003”.
(4) In paragraph (b) of the definition of “war disablement pension”, for “subsection (1) of section 315 of the Income and Corporation Taxes Act 1988 (c. 1)” substitute “any of paragraphs (a) to (f) of section 641(1) of the Income Tax (Earnings and Pensions) Act 2003”.
(5) In paragraph (b) of the definition of “war widow’s or widower’s pension” for “section 315(2)(e) of the Income and Corporation Taxes Act 1988” substitute “section 641(1)(e) or (f) of the Income Tax (Earnings and Pensions) Act 2003”.
268 (1) This paragraph applies if provision is made for Northern Ireland which corresponds to section 171ZJ of the Social Security Contributions and Benefits Act 1992 (c. 4) (Part 12ZA — statutory paternity pay: supplementary) (which was inserted by section 2 of the Employment Act 2002 (c. 22)).
(2) In the Northern Ireland provision any reference to emoluments chargeable to income tax under Schedule E is to be construed as a reference to general earnings (as defined by section 7 of this Act).
269 (1) This paragraph applies if provision is made for Northern Ireland which corresponds to section 171ZS of the Social Security Contributions and Benefits Act 1992 (Part 12ZA — statutory adoption pay: supplementary) (which was inserted by section 4 of the Employment Act 2002).
(2) In the Northern Ireland provision any reference to emoluments chargeable to income tax under Schedule E is to be construed as a reference to general earnings (as defined by section 7 of this Act).