The Income Tax (Pay As You Earn) (Amendment) (No.2) Regulations 2011

• Citation: S.I. 2011/1054
• Sections: 3

Section 1 Citation and commencement

These Regulations may be cited as the Income Tax (Pay As You Earn) (Amendment) (No.2) Regulations 2011.

Section 2 Citation and commencement

These Regulations shall come into force on 6th April 2011, immediately after the Income Tax (Pay As You Earn) (Amendment) Regulations 2011 come into force.

Section 3 Amendment of the Income Tax (Pay As You Earn) Regulations 2003

Regulation 37 ( PAYE income paid after employment ceased) of the Income Tax (Pay As You Earn) Regulations 2003 is amended by the substitution for paragraph (2) of the following—

(2) Subject to paragraph (2A), the person making the payment must deduct tax on the non-cumulative basis using the 0T Code.

(2A) If the payment is in the form of securities, an interest in securities or securities options which gives rise to earnings within Chapter 1 of Part 3 of ITEPA or which counts as employment income by virtue of Part 7 of ITEPA, the person making the payment must deduct tax at the basic rate in force for the tax year in which the payment is made.

(2B) In paragraph (2A)—

“interest”,

“securities”, and

“securities options”

have the meaning indicated in section 420 of ITEPA