Statutory Instruments
2011 No. 1054
Income Tax
The Income Tax (Pay As You Earn) (Amendment) (No.2) Regulations 2011
Made
4th April 2011
Laid before the House of Commons
4th April 2011
Coming into force
6th April 2011
Citation and commencement
1. These Regulations may be cited as the Income Tax (Pay As You Earn) (Amendment) (No.2) Regulations 2011.
2. These Regulations shall come into force on 6th April 2011, immediately after the Income Tax (Pay As You Earn) (Amendment) Regulations 2011( 3 ) come into force.
Amendment of the Income Tax (Pay As You Earn) Regulations 2003
3.Regulation 37 (PAYE income paid after employment ceased) of the Income Tax (Pay As You Earn) Regulations 2003( 4 ) 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 ( 5 ) ” .
Steve Lamey
Dave Hartnett
Two of the Commissioners for Her Majesty’s Revenue and Customs
4th April 2011
2003 c.1 . Paragraph 102 of Schedule 4 to the Commissioners for Revenue and Customs Act 2005 (c.11) amended section 684 so that the Commissioners for Her Majesty’s Revenue and Customs have the power to make the Regulations. Further relevant amendments were made to subsections (1) and (2) by paragraphs 2 and 3(2) of Schedule 58 to the Finance Act 2009 (c.10) .
1970 c.9 . Section 59A was inserted by section 192 of the Finance Act 1994 (c.9) ; subsection (10) was inserted by section 126(1) of the Finance Act 1996 (c.8) . Section 59B was inserted by section 193 of the Finance Act 1994; subsection (8) was inserted by section 126(2) of the Finance Act 1996. Sections 59A(10) and 59B(8) were amended by paragraphs 130(b) and 131(4) respectively of Schedule 6 to the Income Tax (Earnings and Pensions) Act 2003 and section 145(7)(b) of the Finance Act 2003 (c.14) .
S.I. 2003/2682 , amended by S.I. 2007/1077 , 2011/729 .
2003 c.1 . Section 420 was inserted by way of substitution, along with the rest of Chapter 1 of Part 7 of the Income Tax (Earnings and Pensions) Act 2003, by Schedule 22 to the Finance Act 2003 (c.14) . It was subsequently amended by Schedule 2 to the Finance Act (No.2) 2005 (c.22) ; section 92 of the Finance Act 2006 (c.25) ; Part 2 of Schedule 1 to the Corporation Tax Act 2009 (c.4) ; section 126(5) of the Finance Act 2009; paragraphs 203 and 204 of Part 7 of Schedule 8 to the Taxation (International and Other Provisions) Act 2010 (c.8) ; and article 2 of S.I. 2007/2130 .