Social Security (Contributions) (Amendment No. 3) (Northern Ireland) Regulations 2001

JurisdictionUK Non-devolved
CitationSI 2001/597

2001 No. 597

SOCIAL SECURITY, NORTHERN IRELAND

The Social Security (Contributions) (Amendment No. 3) (Northern Ireland) Regulations 2001

Made 26th February 2001

Laid before Parliament 28th February 2001

Coming into force 6th April 2001

The Treasury, in exercise of the powers conferred upon them by sections 3(2), (2A), (3), 4(6) and (7), 10(9) and 171(3), (4) and (10) of the Social Security Contributions and Benefits (Northern Ireland) Act 19921and section 78(9) of the Child Support, Pensions and Social Security Act 20002, with the concurrence of the Department for Social Development3in so far as required, and of all other powers enabling them in that behalf, hereby make the following Regulations:

Citation, commencement and effect
S-1 Citation, commencement and effect

Citation, commencement and effect

1.—(1) These Regulations may be cited as the Social Security (Contributions) (Amendment No. 3) (Northern Ireland) Regulations 2001 and shall come into force on 6th April 2001.

(2) The amendment made by regulation 9 shall have effect in relation to any time in the tax year beginning with 6th April 2000, and to subsequent tax years, and the amendments made by the other provisions of these Regulations shall have effect in relation to the tax year beginning with 6th April 2001 and to subsequent tax years.

Interpretation
S-2 Interpretation

Interpretation

2. In these Regulations “the principal Regulations” means the Social Security (Contributions) Regulations (Northern Ireland) 19794, and, in the following provisions of these Regulations, except where otherwise expressly provided, a reference to a numbered regulation or Schedule is a reference to the regulation of, or Schedule to, the principal Regulations which bears that number.

Amendment of the principal Regulations

Amendment of the principal Regulations

S-3 Amend the principal Regulations in accordance with the...

3. Amend the principal Regulations in accordance with the following provisions of these Regulations.

S-4 In regulation 1(2) (interpretation) after the definition of...

4. In regulation 1(2) (interpretation) after the definition of “British ship” insert—

““cash voucher” has the meaning given to it in section 143 of the Income and Corporation Taxes Act 1988 (cash vouchers taxable under PAYE)5;”.

S-5 For regulation 18 (calculation of earnings) substitute— 18...

5. For regulation 18 (calculation of earnings) substitute—

S-18

Calculation of earnings for the purpose of earnings-related contributions

18. For the purpose of determining the amount of earnings-related contributions, the amount of a person’s earnings from employed earner’s employment shall be calculated on the basis of his gross earnings from the employment or employments in question.

This is subject to the provisions of Schedule 1ZB (calculation of earnings for the purposes of earnings-related contributions in particular cases) and Schedule 1ZC to these Regulations (payments to be disregarded in the calculation of earnings for the purposes of earnings-related contributions).”.

S-6 For regulation 19 (payments to be disregarded in the...

6. For regulation 19 (payments to be disregarded in the calculation of earnings) substitute—

S-19

Payments to be disregarded in the calculation of earnings for the purpose of earnings-related contributions

19. Schedule 1ZC specifies payments which are to be disregarded in the calculation of earnings from employed earner’s employment for the purpose of earnings-related contributions.”.

S-7 Amend regulation 22HA (prescribed emoluments in respect of...

7.—(1) Amend regulation 22HA (prescribed emoluments in respect of which Class 1A contributions are not payable)6as follows.

(2) In paragraph (2), for the words from “by virtue of” to the end substitute—

“by virtue of the following provisions of Schedule 1ZC to these Regulations—

(a) in Part VI, paragraphs 4 to 7;

(b) in Part VIII, paragraphs 4, 5 and 12;

(c) in Part IX, paragraphs 2 to 7; and

(d) in Part X, paragraphs 5, 9 and 11 to 13.”.

(3) In paragraph (3)—

(a)

(a) for “regulation 19(1)(d) of these Regulations” substitute “paragraph 1 of Part II of Schedule 1ZC to these Regulations (payments in kind)”;

(b)

(b) for “regulation 19(1)(zc) of these Regulations” substitute “paragraph 3 of Part VIII of Schedule 1ZC to these Regulations (qualifying travelling expenses)”; and

(c)

(c) for “regulation 19(4)(b) of these Regulations” substitute “paragraph 9 of Part VIII of Schedule 1ZC to these Regulations (specific and distinct expenses)”.

(4) In paragraph (4) for “regulation 19(1)(y)(ii) of these Regulations” substitute “paragraph 2(2)(b) of Part VIII of Schedule 1ZC to these Regulations (relocation expenses where the relevant change occurred before 6th April 1998)”.

(5) In paragraph (7) for sub-paragraph (e) substitute—

“(e)

“(e) A57 (staff suggestion schemes);”.

S-8 In regulation 43D(2)(Class 2 and Class 3 contributions paid...

8. In regulation 43D(2)(Class 2 and Class 3 contributions paid late through ignorance or error)7for the words from “the amount of such a contribution” to the end substitute—

“the amount of that contribution shall be calculated by reference to the weekly rate at which a contribution paid under section 12 of the Social Security Contributions and Benefits (Northern Ireland) Act 19928would have been payable if it had been paid at the time when the period began.”.

S-9 In regulation 111(2)(b) (conditions as to residence or presence...

9. In regulation 111(2)(b) (conditions as to residence or presence in Northern Ireland and liability for Class 1A contribution)9for “in respect of any car” substitute “in respect of something”.

S-10 After Schedule 1ZA (elections about share option gains) insert...

10. After Schedule 1ZA (elections about share option gains)10insert (as Schedule 1ZB) the Schedule set out in Schedule 1 to these Regulations.

S-11 After Schedule 1ZB (inserted by regulation 10 of these...

11. After Schedule 1ZB (inserted by regulation 10 of these Regulations) insert (as Schedule 1ZC) the Schedule set out in Schedule 2 to these Regulations.

S-12 Omit Schedules 1A , 1B and 1C .

Omit Schedules 1A , 1B and 1C .

12. Omit Schedules 1A11, 1B12and 1C13.

Clive Betts

Jim Dowd

Two of the Lords Commissioners of Her Majesty’s Treasury

20th February 2001

John O'Neill

Senior Officer of the

Department for Social Development

SCHEDULE 1

Regulation 10

SCHEDULE TO BE INSERTED AS SCHEDULE 1ZB IN THE PRINCIPAL REGULATIONS

SCHEDULE 1ZB

Regulation 18

CALCULATION OF EARNINGS FOR THE PURPOSES OF EARNINGS-RELATED CONTRIBUTIONS IN PARTICULAR CASES

Calculation of earnings

This Schedule contains rules for the calculation of earnings in the assessment of earnings-related contributions in particular cases.

In this Schedule—

“the Taxes Act” means the Income and Corporation Taxes Act 1988;

“Schedule 1ZC” means Schedule 1ZC to these Regulations; and

“Schedule E” means the Schedule referred to as Schedule E in the Taxes Act.

In this Schedule unless the context otherwise requires—

a reference to a numbered paragraph, is a reference to the paragraph in this Schedule bearing that number;

a reference in a paragraph to a numbered sub-paragraph is a reference to the sub-paragraph of that paragraph bearing that number;

a reference in a sub-paragraph to a lettered paragraph is a reference to the paragraph of that sub-paragraph bearing that letter; and

a reference in a lettered paragraph to a numbered head is a reference to the head in that lettered paragraph bearing that number.

Calculation of earnings in respect of beneficial interest in assets within Part IV of Schedule 1ZC

Except where paragraph 3, 4, 5 or 6 applies, the amount of earnings comprised in any payment by way of the conferment of any beneficial interest in any asset specified in Part IV of Schedule 1ZC, and which falls to be taken into account in the calculation of a person’s earnings shall be calculated or estimated at a price which that beneficial interest might reasonably be expected to fetch if sold in the open market on the day on which it is conferred.

For the purposes of sub-paragraph (1), where any asset is not quoted on a recognised stock exchange within the meaning of section 841 of the Taxes Act, it shall be assumed that, in the open market which is postulated, there is available to any prospective purchaser of the beneficial interest in the asset in question all the information which a prudent prospective purchaser might reasonably require if he were proposing to purchase it from a willing vendor by private treaty and at arm’s length.

Valuation of beneficial interest in units in a unit trust scheme

The amount of earnings which is comprised in any payment by way of the conferment of a beneficial interest in any units in a unit trust scheme (within the meaning of section 75(8) of the Financial Services Act 198614) having a published selling price and which falls to be taken into account in the calculation of a person’s earnings shall be calculated or estimated by reference to the published selling price on the day in question.

Here “published selling price” means the lowest selling price published on the date on which the payment in question is made, and where no such price is published on that date, it means the lowest selling price published on the last previous date on which such a price was published.

Conferment of a beneficial interest in an option to acquire an asset falling within Part IV of Schedule 1ZC

The amount of earnings which is comprised in a payment by way of the conferment of a beneficial interest in an option to acquire any asset falling within Part IV of Schedule 1ZC shall be calculated or estimated by reference to the amount which would be comprised in accordance with paragraph 2, or, if paragraph 3, 5 or 6 would apply in accordance with that paragraph, in a payment by way of the conferment of a beneficial interest—

in the asset which may be acquired by the exercise of the option; or

...

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