SCHEDULE 1ZA ELECTIONS ABOUT SHARE OPTION GAINS

Regulation 46B

1

1

An election for the purposes of paragraph 3B(1) of Schedule 1 to the Social Security Contributions and Benefits Act 1992 must contain—

a

details of the share options to which it relates, or of the period within which the share options to which it relates are intended to be granted;

b

a statement that the election relates to any gain on which the employed earner is liable to pay secondary Class 1 contributions under section 4(4)(a) of the Social Security Contributions and Benefits Act 1992 and an explanation of the effect of that paragraph;

c

the amount or proportion (as the case may be) of the liability for secondary Class 1 contributions to be transferred;

d

a statement that its purpose is to transfer the liability for the secondary Class 1 contributions referred to in paragraph (c) from the secondary contributor to the employed earner;

e

a statement as to the method by which the secondary contributor will secure that the liability for amounts of contributions, transferred under the election, is met;

f

a statement as to the circumstances in which it shall cease to have effect;

g

a declaration by the employed earner that he agrees to be bound by its terms; and

h

evidence sufficient to show that the secondary contributor agrees to be bound by its terms.

2

The declaration referred to in sub-paragraph (1)(g) must either be signed by the employed earner or, if it is made by electronic communications, made by him in such electronic form and by such means of electronic communications as may be authorised by the Commissioners of Inland Revenue.

2

1

An election to which this Schedule applies must be made either in writing or in such electronic form and by such means of electronic communications as may be authorised by the Commissioners of Inland Revenue.

2

An election to which this Schedule applies may be contained in two documents, one made by the employed earner and the other by the secondary contributor, in which case—

a

the document made by the employed earner must contain the matters listed in paragraph 1(1)(a) to (g); and

b

the document made by the secondary contributor must contain the matters listed in paragraph 1(1)(a) to (f) and (h).

3

1

Where an election to which this Schedule applies has been made, the secondary contributor shall notify the employed earner to whom any of his liabilities are transferred by the election of—

a

any transferred liability that arises;

b

the amount of any transferred liability that arises; and

c

the contents of any notice of withdrawal by the Inland Revenue of any approval that relates to the election.

2

The secondary contributor shall notify the employed earner of the matters set out in sub-paragraph (1)(a) and (b) as soon as reasonably practicable.

3

The secondary contributor shall notify the employed earner of the matters set out in sub-paragraph (1)(c) within 14 days of receipt of the notice of withdrawal in question.

4

1

In this Schedule “electronic communications" has the meaning given by section 132(10) of the Finance Act 1999.

2

In this Schedule, unless the context otherwise requires—

a

a reference to a numbered paragraph is a reference to the paragraph of this Schedule bearing that number;

b

a reference in a paragraph to a numbered sub-paragraph is a reference to the sub-paragraph in that paragraph bearing that number; and

c

a reference in a sub-paragraph to a lettered paragraph is a reference to the paragraph in that sub-paragraph bearing that letter.