The Social Security (Miscellaneous Amendments) Regulations 2017

Amendment of the Social Security (Contributions) Regulations 2001

3.  After regulation 40A (exception from liability to pay Class 1A contributions in respect of an amount representing an amount on which Class 1 or Class 1A contributions have already been paid pursuant to the Social Security Contributions (Limited Liability Partnership) Regulations 2014)(1) insert—

“Exception from liability to pay Class 1A contributions for tax year 2017-18 in respect of sporting testimonial payments

40B.— (1) Paragraph (2) applies to Class 1A contributions payable for the tax year 2017-18 where—

(a) the whole or part of the general earnings in respect of which the Class 1A contribution is payable consists of a sporting testimonial payment, and

(b) the person making the sporting testimonial payment is the controller of the independent sporting testimonial committee.

(2) Class 1A contributions shall not be payable by the secondary contributor(2) in respect of the sporting testimonial payment for the tax year 2017-18.

(3) In this regulation—

(a) “controller” means the person who controls the disbursement of any money raised by the independent sporting testimonial committee for or for the benefit of an individual who is or has been employed as a professional sports person,

(b) “independent sporting testimonial committee” means a committee which acts independently of the secondary contributor in organising a sporting testimonial and making the sporting testimonial payment, and

(c) “sporting testimonial” and “sporting testimonial payment” have the meaning given in section 226E of ITEPA 2003 (sporting testimonial payments)(3).”.

(1)

Regulation 40A was inserted by S.I. 2014/3159.

(2)

“Secondary contributor” is defined in section 7 of the Social Security Contributions and Benefits Act 1992 and in section 7 of the Social Security Contributions (Northern Ireland) Act 1992.

(3)

Section 226E was inserted by section 12 of, and paragraph 1 of Schedule 2 to the Finance Act 2016 (c. 24).