Income Tax (Earnings and Pensions) Act 2003 (c. 1)

Part 7U.K.[F1Employment income: income and exemptions relating to securities]

Textual Amendments

F1Pt. 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)

Modifications etc. (not altering text)

C1Pt. 7: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)

(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.

Textual Amendments