The Social Security (Contributions) Regulations 2001

Regulation 69

SCHEDULE 5 U.K. ELECTIONS ABOUT [F1 SECURITIES OPTIONS, RESTRICTED SECURITIES AND CONVERTIBLE SECURITIES]

Textual Amendments

F1 Words in Sch. 5 heading substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2004 (S.I. 2004/2096), regs. 1(1), 8(a)

1.—(1) An election for the purposes of paragraph 3B(1) of Schedule 1 to the Act shall contain— U.K.

[F2 (a) details of the securities options, restricted securities and convertible securities to which it relates, or of the period to which it relates, within which these are intended to be awarded or acquired;

(b) a statement that the election relates to relevant employment income arising from the securities or securities options referred to in sub-paragraph (1)(a) on which the employed earner is liable to pay secondary Class 1 contributions under—

(i) in the case of securities options, section 476 of ITEPA 2003 and section 4(4)(a) of the Act;

(ii) in the case of restricted securities, section 426 of ITEPA 2003 and regulation 22(7);

(iii) in the case of convertible securities, section 438 of ITEPA 2003 and regulation 22(7), and

an explanation of the effect of the relevant provision;]

(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;

[F3 (dd) a statement that it does not apply in relation to any liability, or any part of any liability, arising as a result of regulations being given retrospective effect by virtue of section 4B(2) of either the Social Security Contributions and Benefits Act 1992 or the Social Security Contributions and Benefits (Northern Ireland) Act 1992;]

(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 Board.

Textual Amendments

F2 Sch. 5 para. 1(1)(a)(b) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security (Contributions) (Amendment No. 4) Regulations 2004 (S.I. 2004/2096), regs. 1(1), 8(b)

F3 Sch. 5 para. 1(1)(dd) inserted (6.4.2006) by The Social Security (Contributions) (Amendment No. 3) Regulations 2007 (S.I. 2007/1175), regs. 1(1), 2(2) (with reg. 2(3))

2.—(1) An election to which this Schedule applies shall be made either in writing or in such electronic form and by such means of electronic communications as may be authorised by the Board. U.K.

(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 shall contain the matters listed in paragraph 1(1)(a) to (g); and

(b) the document made by the secondary contributor shall 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— U.K.

(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 Board 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.