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National Insurance Contributions (Termination Awards and Sporting Testimonials) Act 2019

Consolidated Text As Enacted Cited authorities 18 Cited in Related
Vincent
JurisdictionUK Non-devolved
Citation2019 c. 23
Year2019
(1) Section 10 of the Social Security Contributions and Benefits Act 1992 (Class 1A contributions: benefits in kind etc.) is amended as follows.(2) After subsection (1) insert—
  • “(1A) A Class 1A contribution is payable for a tax year, in accordance with this section, in respect of an earner and the amount of a termination award if and so far as—
  • (a) that amount counts as employment income of the earner under section 403 of ITEPA 2003 (charge on termination payments or benefits) , and
  • (b) the earner is chargeable to income tax on that amount for the tax year by virtue of that section.
that amount counts as employment income of the earner under section 403 of ITEPA 2003 (charge on termination payments or benefits) , andthe earner is chargeable to income tax on that amount for the tax year by virtue of that section.No Class 1A contribution is payable under subsection (1A) in respect of an amount so far as it is an amount of earnings in respect of which Class 1 contributions are payable.No Class 1A contribution is payable under subsection (1A) unless the employment which is terminated is employed earner's employment.(3) In subsection (2) , in the words before paragraph (a) , after “contribution” insert “ payable under subsection (1) ”.(4) After subsection (3) insert—
  • “(3A) A Class 1A contribution payable under subsection (1A) is payable by the person who, if the amount in respect of which the Class 1A contribution is payable were earnings in respect of which Class 1 contributions would be payable, would be liable to pay the secondary Class 1 contribution.
A Class 1A contribution payable under subsection (1A) is payable by the person who, if the amount in respect of which the Class 1A contribution is payable were earnings in respect of which Class 1 contributions would be payable, would be liable to pay the secondary Class 1 contribution.(5) In subsection (4) after “contribution” insert “ payable under subsection (1) ”.(6) After subsection (4) insert—
  • “(4A) The amount of the Class 1A contribution payable under subsection (1A) in respect of an amount is the Class 1A percentage of that amount.
The amount of the Class 1A contribution payable under subsection (1A) in respect of an amount is the Class 1A percentage of that amount.(7) In subsection (5) for “subsection (4) ” substitute “ subsections (4) and (4A) ”.(8) In subsection (9) (a) for “or general earnings” substitute “ , general earnings or termination awards ”.(9) After subsection (11) insert—
  • “(12) In this section “termination award” means a payment or benefit received by an earner (or an earner's spouse, civil partner, blood relative or dependant) in connection with the termination of the earner's employment.
In this section “termination award” means a payment or benefit received by an earner (or an earner's spouse, civil partner, blood relative or dependant) in connection with the termination of the earner's employment.(10) In the heading, omit “: benefits in kind etc.”(11) In section 162(5) of the Social Security Administration Act 1992 (appropriate national health service allocation) , in paragraph (c) , after “general earnings” insert “ and the amounts chargeable to income tax under section 403 of the Income Tax (Earnings and Pensions) Act 2003 ”.(1) Section 10 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (Class 1A contributions: benefits in kind etc.) is amended as follows.(2) After subsection (1) insert—
  • “(1A) A Class 1A contribution is payable for a tax year, in accordance with this section, in respect of an earner and the amount of a termination award if and so far as—
  • (a) that amount counts as employment income of the earner under section 403 of ITEPA 2003 (charge on termination payments or benefits) , and
  • (b) the earner is chargeable to income tax on that amount for the tax year by virtue of that section.
that amount counts as employment income of the earner under section 403 of ITEPA 2003 (charge on termination payments or benefits) , andthe earner is chargeable to income tax on that amount for the tax year by virtue of that section.No Class 1A contribution is payable under subsection (1A) in respect of an amount so far as it is an amount of earnings in respect of which Class 1 contributions are payable.No Class 1A contribution is payable under subsection (1A) unless the employment which is terminated is employed earner's employment.(3) In subsection (2) , in the words before paragraph (a) , after “contribution” insert “ payable under subsection (1) ”.(4) After subsection (3) insert—
  • “(3A) A Class 1A contribution payable under subsection (1A) is payable by the person who, if the amount in respect of which the Class 1A contribution is payable were earnings in respect of which Class 1 contributions would be payable, would be liable to pay the secondary Class 1 contribution.
A Class 1A contribution payable under subsection (1A) is payable by the person who, if the amount in respect of which the Class 1A contribution is payable were earnings in respect of which Class 1 contributions would be payable, would be liable to pay the secondary Class 1 contribution.(5) In subsection (4) after “contribution” insert “ payable under subsection (1) ”.(6) After subsection (4) insert—
  • “(4A) The amount of the Class 1A contribution payable under subsection (1A) in respect of an amount is the Class 1A percentage of that amount.
The amount of the Class 1A contribution payable under subsection (1A) in respect of an amount is the Class 1A percentage of that amount.(7) In subsection (5) for “subsection (4) ” substitute “ subsections (4) and (4A) ”.(8) In subsection (9) (a) for “or general earnings” substitute “ , general earnings or termination awards ”.(9) After subsection (11) insert—
  • “(12) In this section “termination award” means a payment or benefit received by an earner (or an earner's spouse, civil partner, blood relative or dependant) in connection with the termination of the earner's employment.
In this section “termination award” means a payment or benefit received by an earner (or an earner's spouse, civil partner, blood relative or dependant) in connection with the termination of the earner's employment.(10) In the heading, omit “: benefits in kind etc.”(11) In section 142(5) of the Social Security Administration (Northern Ireland) Act 1992 (appropriate health service allocation) , in paragraph (c) , after “general earnings” insert “ and the amounts chargeable to income tax under section 403 of the Income Tax (Earnings and Pensions) Act 2003 ”.(1) The Social Security Contributions and Benefits Act 1992 is amended as follows.(2) In section 10 (Class 1A contributions: benefits in kind etc) in subsection (2) for “section 10ZA below” substitute “ sections 10ZA and 10ZBA ”.(3) In section 10ZA (liability of third party provider of benefits in kind) after subsection (1) insert—
  • “(1A) This section does not apply if the benefit is a sporting testimonial payment (see section 10ZBA) .
This section does not apply if the benefit is a sporting testimonial payment (see section 10ZBA) .(4) After section 10ZB insert—
    (10ZBA) Liability of third party controller of sporting testimonial
  • “(1) This section applies where—
  • (a) a Class 1A contribution is payable for any...
a Class 1A contribution is payable for any

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