PART V PROVISIONS RELATING TO THE SCHEDULE E CHARGE
CHAPTER IV OTHER EXEMPTIONS AND RELIEFS
F1 Contributions in respect of share option gains
C1187A Relief for contributions in respect of share option gains.
1
Where a person (“the earner”) is chargeable to tax under section 135 on a gain, relief is available under this section if—
a
an agreement has been entered into allowing the secondary contributor to recover from the earner the whole or part of any secondary Class 1 contributions in respect of the gain, or
b
an election is in force which has the effect of transferring to the earner the whole or part of the liability to pay secondary Class 1 contributions in respect of the gain.
2
The amount of the relief is the total of—
a
any amount that, in pursuance of any such agreement as is mentioned in subsection (1)(a), is recovered in respect of the gain by the secondary contributor not later than 60 days after the end of the year of assessment in which occurred the event giving rise to the charge to tax under section 135; and
b
the amount of any liability in respect of that gain that, by virtue of any such election as is mentioned in subsection (1)(b), has become the earner’s liability.
3
Where notice of withdrawal of approval of any such election is given, relief under subsection (2)(b) is limited to so much of the earner’s liability in respect of the gain as is met before the end of the 60th day after the end of the year of assessment in which occurred the event giving rise to the charge under section 135.
4
Relief under this section shall be given by way of deduction from the amount of the gain on which the earner is chargeable to tax under section 135.
5
Any such deduction does not affect the amount of the gain for the purposes of—
a
section 120(4) of the M1Taxation of Chargeable Gains Act 1992 (amount treated as consideration for acquisition of shares), or
b
section 4(4)(a) of the Contributions and Benefits Act (amount treated as remuneration for contributions purposes).
6
The agreements and elections referred to in this section are those having effect under paragraph 3A or 3B of Schedule 1 to the Contributions and Benefits Act.
References to approval in relation to an election are to approval by the Inland Revenue under paragraph 3B of that Schedule.
7
In this section—
S. 187A and preceding cross-heading inserted (with application in accordance with s. 56(1) of the amending Act) by Finance Act 2000 (c. 17), s. 56(1)