C1Part 7F1Employment income: income and exemptions relating to securities
Pt. 7: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)
Chapter 6Approved share incentive plans
PAYE
511PAYE deductions to be made by trustees on shares ceasing to be subject to plan
1
This section applies if, as a result of any shares ceasing to be subject to an approved SIP—
a
there is an amount that counts as employment income of a participant by virtue of the SIP code, and
b
condition A or B is met.
2
Condition A is that F2an officer of Revenue and Customs —
a
F3is of the opinion that it is impracticable for the employer company (within the meaning of section 510) to make a PAYE deduction, and
b
accordingly F4directs that this section is to apply.
3
Condition B is that there is no company that qualifies as the employer company (within the meaning of that section).
4
If this section applies—
a
section 510(2) does not apply, and
b
the trustees must make a PAYE deduction in respect of the taxable equivalent as if the participant were a former employee of the trustees.
5
The “taxable equivalent” means an amount equal to that mentioned in subsection (1).
6
If this section applies, section 689 (employee of non-UK employer) does not apply.
Pt. 7 heading substituted (with effect in accordance with Sch. 22 para. 2(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 2(1)