The Social Security (Contributions) (Amendment No. 6) (Northern Ireland) Regulations 2000

• Citation: S.I. 2000/2086
• Sections: 10

Section 1 Citation and commencement

These Regulations may be cited as the Social Security (Contributions) (Amendment No. 6) (Northern Ireland) Regulations 2000 and shall come into force on 4th August 2000.

Section 2 Interpretation

In these Regulations “the principal Regulations ” means the Social Security (Contributions) Regulations (Northern Ireland) 1979 .

Section 3 Amendment of the principal Regulations

The principal Regulations are amended in accordance with regulations 4 to 9 below.

Section 4 Amendment of the principal Regulations

In regulation 1(2) (interpretation) in the definition of “readily convertible asset” at the end there is added “, but this is subject to paragraph 128(2) of Schedule 8 to the Finance Act 2000 (approved employee share ownership plans—meaning of readily convertible asset) ”.

Section 5 Amendment of the principal Regulations

For regulation 17A (payments to directors to be treated as earnings) there is substituted—

Payments to be treated as earnings

(17A)

(1) For the purposes of section 3 of the Act (earnings) the amounts specified in paragraphs (2) to (4) of this regulation shall be treated as remuneration derived from an employed earner’s employment.

(2) The amount specified in this paragraph is the amount of any payment by a company to or for the benefit of any of its directors if—

(a) apart from this paragraph the payment would, when made, not be earnings for the purposes of the Act; and

(b) the payment is made on account of or by way of an advance on a sum which would be earnings for those purposes.

(3) The amount specified in this paragraph is any amount in respect of which an employed earner is chargeable to tax under Schedule E under any provision of sections 140A to 140H of the Income and Corporation Taxes Act 1988 (conditional acquisition of shares and convertible shares) in respect of the acquisition, on or after 9th April 1998, of shares or an interest in shares.

(4) The amount specified in this paragraph is any amount in respect of which—

(a) an employed earner is chargeable to tax under Schedule E under any provision of Part X of Schedule 8 to the Finance Act 2000 (employee share ownership plans—income tax); and

(b) income tax is deductible under regulations made under section 203 of the Income and Corporation Taxes Act 1988 ( PAYE regulations).

Section 6 Amendment of the principal Regulations

Regulation 17AB (further provision as to payments to be treated as earnings) is revoked.

Section 7 Amendment of the principal Regulations

In regulation 18 (calculation of earnings) in paragraph (15)(c) for “by virtue of regulation 17AB” there is substituted “under regulation 17A(3)”.

Section 8 Amendment of the principal Regulations

(1) Regulation 19 (payments to be disregarded) is amended in accordance with the following provisions of this regulation.

(2) In paragraph (1)—

(a) after sub-paragraph (1) there are inserted the following sub-paragraphs—

(la) a payment by way of the grant of a qualifying option within the meaning of Schedule 14 to the Finance Act 2000 (enterprise management incentives) which is capable of being exercised more than ten years after the grant;

(lb) a payment deducted from the earnings of the employment under a partnership share agreement;

(lc) a payment by way of an award of shares under an employee share ownership plan;

(b) in head (ii) of sub-paragraph (zf) for “by virtue of regulation 17AB of these Regulations (further provision as to payments to be treated as earnings)” there is substituted “under regulation 17A(3) (payments to be treated as earnings—conditional acquisition of shares and convertible shares)”; and

(c) in sub-paragraph (zg) for “by virtue of regulation 17AB” there is substituted “under regulation 17A(3)”.

(3) After paragraph (8) there are inserted the following paragraphs—

(8A) In paragraph (1)(lb) “partnership share agreement” has the meaning given in paragraph 34 of Schedule 8 to the Finance Act 2000.

(8B) In paragraph (1)(lc) “employee share ownership plan” has the meaning given in paragraph 1(1) of Schedule 8 to the Finance Act 2000.

Section 9 Amendment of the principal Regulations

In Regulation 13(3D)(b)(ii) of Schedule 1 to the principal Regulations (calculation of deduction in respect of earnings-related contributions) for “17AB” substitute “17A(3)”.

Section 10 Consequential amendment of the Social Security Contributions (Intermediaries) (Northern Ireland) Regulations 2000

In regulation 7(1) of the Social Security Contributions (Intermediaries) (Northern Ireland) Regulations 2000 , in paragraph (a) of Step Seven for “17A” there is substituted “17A(2)”.