New Clause 4 - Procedure when right to acquire ceasesto be exercisable
Social Security Contributions
12:30 pm
Mr Howard Flight (Arundel and South Downs, Conservative)
The new clause would not undermine certainty. If companies pay the special NIC, that discharges the future employer's NIC liability. All it does is to provide that if no NIC is payable because the option lapses, the NIC will be paid back. It would not undermine the principle of certainty. It boils down to whether the Committee believes that the quid pro quo gamble on NIC liability is a principle that we want in our tax law. Our view remains that that is undesirable, and that it would be fairer, if NIC liability is not to apply on exercise, to provide that it will be refunded if options are not exercised. The Government have made it clear that they are keen on their quid pro gamble, notwithstanding the concerns of many eminent tax lawyers. I shall not carry the argument further, but perhaps the Minister will think about it a little further in his bath ahead of Report stage. I beg to ask leave to withdraw the motion.
Motion and clause, by leave, withdrawn.