The Social Security (Contributions) (Amendment No. 5) Regulations 2003

Amendment of the principal Regulations

5.—(1) Amend regulation 22 (payment to be treated as earnings)(1) as follows.

(2) In the heading for “Payment” substitute “Amounts”.

(3) In paragraph (1) for “(2) to (5)” substitute “(2) to (8)”.

(4) For paragraphs (3) to (5) substitute—

“(3) The amount specified in this paragraph is the amount equal to the cash equivalent in respect of car fuel which is treated as earnings from the employment of the earner for income tax purposes by virtue of section 149 of ITEPA 2003.

(4) The amount specified in this paragraph is the amount which is treated as earnings from the employment of the employed earner by virtue of section 222(2) of ITEPA 2003(2).

(5) The amount specified in this paragraph is the amount which counts as employment income of the employed earner under Chapter 2 of Part 7 of ITEPA 2003 computed in accordance with section 428 of ITEPA 2003(3) in respect of conditional shares or interests in conditional shares acquired before 16th April 2003.

• References in this paragraph and paragraph (6) to ITEPA 2003 are to that Act as originally enacted.

(6) The amount specified in this paragraph is the amount which counts as employment income of the employed earner by virtue of Chapter 4 of Part 7 of ITEPA 2003 (shares: post-acquisition charges) in respect of shares or interests in shares acquired before 16th April 2003.

(7) The amounts specified in this paragraph are those—

(a) which count as employment income of the employed earner in relation to employment-related securities (within the meaning given by section 421B(8) of ITEPA 2003(4)); and

(b) to which section 698 of ITEPA 2003 (PAYE: special charges on employment-related securities) (5) applies.

• References in this paragraph to ITEPA 2003 are to that Act as amended by Schedule 22 to the Finance Act 2003.

(8) The amount specified in this paragraph is the amount—

(a) which counts as employment income of the employed earner by virtue of sections 500 to 508 of ITEPA 2003; and

(b) in respect of which income tax is recoverable in accordance with PAYE regulations.”.

(1)

Regulation 22 was amended by regulation 4 of S.I. 2002/307.

(2)

Section 222 was amended by section 144 of the Finance Act 2003.

(3)

Section 428 is substituted by paragraph 3(1) of Schedule 22, subject to the saving contained in paragraph 3(2) of that Schedule in relation to securities and interests in securities acquired before 16th April 2003.

(4)

Section 421B was inserted by paragraph 2(1) of Schedule 22.

(5)

Section 698 is substituted by paragraph 12(1) of Schedule 22, subject to the saving in sub-paragraph (2) of that paragraph.