- Statutory Instrument 2004 No. 2246
The Social Security (Contributions) (Amendment No. 5) Regulations 2004
© Crown Copyright 2004
Statutory Instruments printed from this website are printed under the superintendence and authority of the Controller of HMSO being the Queen's Printer of Acts of Parliament.
The legislation contained on this web site is subject to Crown Copyright protection. It may be reproduced free of charge provided that it is reproduced accurately and that the source and copyright status of the material is made evident to users.
It should be noted that the right to reproduce the text of Statutory Instruments does not extend to the Queen's Printer imprints which should be removed from any copies of the Statutory Instrument which are issued or made available to the public. This includes reproduction of the Statutory Instrument on the Internet and on intranet sites. The Royal Arms may be reproduced only where they are an integral part of the original document.
The text of this Internet version of the Statutory Instrument which is published by the Queen's Printer of Acts of Parliament has been prepared to reflect the text as it was Made. A print version is also available and is published by The Stationery Office Limited as the The Social Security (Contributions) (Amendment No. 5) Regulations 2004, ISBN 0110497600. The print version may be purchased by clicking here. Braille copies of this Statutory Instrument can also be purchased at the same price as the print edition by contacting TSO Customer Services on 0870 600 5522 or e-mail: customer.services@tso.co.uk.
Further information about the publication of legislation on this website can be found by referring to the Frequently Asked Questions.
To ensure fast access over slow connections, large documents have been segmented into "chunks". Where you see a "continue" button at the bottom of the page of text, this indicates that there is another chunk of text available.
| Made | 1st September 2004 | ||
| Laid before Parliament | 1st September 2004 | ||
| Coming into force | 22nd September 2004 |
The Commissioners of Inland Revenue, in exercise of the powers conferred upon them by paragraph 3(3B), (5) and (6) of Schedule 1 to the Social Security Contributions and Benefits Act 1992[1] and paragraph 3(3B), (5) and (6) of Schedule 1 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992[2], make the following Regulations:
Citation and commencement
1. These Regulations may be cited as the Social Security (Contributions) (Amendment No. 5) Regulations 2004 and shall come into force on 22nd September 2004.
Amendment of the Social Security (Contributions) Regulations 2001
2. - (1) Paragraph 7 of Schedule 4 to the Social Security (Contributions) Regulations 2001 (recovery of Class 1 contributions: calculation of amount of deduction) [3] shall be amended as follows.
(2) For sub-paragraph (9) substitute -
-
"
(9) Sub-paragraph (11) applies where -
-
(a) an employee receives non-monetary earnings comprising, or derived from, relevant securities; or
(b) during the post-cessation period a former employee receives non-monetary earnings -
-
(i) comprising, or derived from, relevant securities; and
(ii) in connection with the former employment.
-
Here "the post-cessation period" means the period beginning with the day on which the employment ceased and ending with the last day of the next tax year.".
(3) For sub-paragraphs (11) and (12) substitute -
-
"
(11) Where this sub-paragraph applies, the employer or former employer may -
-
(a) retain such of the relevant securities as is necessary to enable him to recover the whole or any part of the primary Class 1 contributions in respect of those securities; and
(b) sell those securities.
This sub-paragraph is subject to sub-paragraphs (12) and (12A).
(11A) In sub-paragraphs (9), (11), (12) and (12A) "relevant securities" means securities in respect of which an amount is chargeable to income tax as employment income.
(12) The employer or former employer shall not retain or sell relevant securities without the prior written consent of the employee or former employee.
(12A) An employer or former employer who has retained relevant securities in accordance with sub-paragraph (11) shall account to the employee or former employee in respect of so much of the proceeds of sale as is not required to enable the employer or former employer to recover the primary Class 1 contributions in respect of those securities.".
Ann Chant
Dave Hartnett
Two of the Commissioners of Inland Revenue
1st September 2004
(This note is not part of the Regulations)
These Regulations amend the Social Security (Contributions) Regulations 2001 (S.I. 2001/1004).
Regulation 1 provides for the citation and commencement of this instrument.
Regulation 2 amends paragraph 7 of Schedule 4 to the 2001 Regulations. It replaces sub-paragraphs (9), (11) and (12). The existing sub-paragraph (9) is replaced by a new sub-paragraph, whilst sub-paragraphs (11) and (12) are replaced by four new sub-paragraphs ((11), (11A), (12) and (12A)).
The amendments reflect the extension of the recovery mechanism provided for in paragraph 3 of Schedule 1 to each of the Social Security Contributions and Benefits Act 1992 and the Social Security Contributions and Benefits (Northern Ireland) Act 1992 by sections 1 and 2 of the National Insurance and Statutory Payments Act 2004 (c. 3). They enable an employer or former employer, with the prior written consent of the employee or former employee, to retain and sell employment-related securities, or securities derived from the exercise of an employment-related securities option, in order to discharge the liability for primary Class 1 contributions on earnings comprising, or derived from, employment-related securities.
These Regulations do not impose new costs on business.
Notes:
[1] 1992 c. 4. Paragraph 3 has been amended. Relevant amendments are those made by section 55 of the Social Security Act 1998 (c. 14), paragraph 33 of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), paragraph 13(3) of Schedule 1 to the National Insurance Contributions Act 2002 (c. 19) and section 1(3) and (5) of, and Schedule 2 to, the National Insurance Contributions and Statutory Payments Act 2004 (c. 3: "the 2004 Act").back
[2] 1992 c. 7. Paragraph 3 has been amended. Relevant amendments are those made by Article 52(b) of the Social Security (Northern Ireland) Order 1998 (S.I. 1998/1510 (N.I. 10)), paragraph 32 of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (S.I. 1999/671) and section 2(3) and (5) of, and Schedule 2 to, the 2004 Act. The functions of the Department of Health and Social Services for Northern Ireland were transferred to the Department for Social Development by Article 8(b) of, and Part II of Schedule 6 to, the Departments (Transfer and Assignment of Functions) Order (Northern Ireland) 1999 (S.R. 1999 No. 481).back
[3] S.I. 2001/1004. Relevant amendments are those made by S.I. 2002/2929 and 2004/770.back
ISBN 0 11 049760 0