The Social Security (Contributions) (Amendment No. 4) Regulations 2004

Amendments to the Social Security (Contributions) Regulations 2001

8.  In Schedule 5 (elections about share option gains)—

(a) in the heading, for “SHARE OPTION GAINS” substitute “SECURITIES OPTIONS, RESTRICTED SECURITIES AND CONVERTIBLE SECURITIES”; and

(b) in paragraph 1(1) for paragraphs (a) and (b) substitute—

“(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(1) and section 4(4)(a) of the Act(2);

(ii) in the case of restricted securities, section 426 of ITEPA 2003(3) and regulation 22(7)(4);

(iii) in the case of convertible securities, section 438 of ITEPA 2003(5) and regulation 22(7), and

an explanation of the effect of the relevant provision;”.

(1)

Section 476 of ITEPA 2003 was substituted by paragraph 10(1) of Schedule 22 to the Finance Act 2003.

(2)

Section 4(4) of the Act was substituted by section 50(1) of the Social Security Act 1998. Subsection (4)(a) was substituted by paragraph 172(2) of Part 2 of Schedule 6 to ITEPA 2003 and amended by paragraph 48 of Schedule 22 to the Finance Act 2003.

(3)

Section 426 of ITEPA 2003 was substituted by paragraph 3(1) of Schedule 22 to the Finance Act 2003.

(4)

Regulation 22(7) was substituted by regulation 5 of S.I. 2003/3085.

(5)

Section 438 of ITEPA 2003 was substituted by paragraph 4(1) of Schedule 22 to the Finance Act 2003.