Clause 1 - Notices relating to share optionsacquired before 19th May 2000
Social Security Contributions
11:30 am
Mr Joe Benton (Bootle, Labour)
With this it will be convenient to take the following: New clause 1—No liability to Class 1 contributions—
`(1) Notwithstanding any other enactment, no liability to Class 1 contributions under the Contributions and Benefits Act shall lie in respect of the exercise of any relevant right, or any right to acquire shares granted or acquired in consideration of the assignment or release of a relevant right.
(2) In subsection (1) above a ``relevant right'' is a right to acquire shares in a body corporate, whether or not granted or acquired in consideration of the assignment or release of any other such right,
(a) which was granted or acquired after 5th April 1999;
(b) which was granted or acquired before 20th May 2000;
(c) which, on 7th November 2000, was not a readily convertible asset nor a right to acquire shares which were readily convertible assets.
(3) In this section ``readily convertible assets'' has the meaning given it in section 203F of the Income and Corporation Taxes Act 1988.'.
New clause 2--Automatic rights: notice under section 1 and payment under section 2--
`(1) The appropriate notice under section 1 and the payment of the special contribution under section 2 shall be deemed to have occurred in respect of any automatic right on the coming into force of this Act.
(2) In subsection (1) above an ``automatic right'' is a right to acquire shares in a body corporate obtained after 5th April 1999 and before 20th May 2000 where, on 7th November 2000, the amount payable to acquire the shares which are the subject of that right was not manifestly less than the market value of those shares.
(3) In this section ``market value'' has the meaning given it in Part VIII of the Taxation of Chargeable Gains Act 1992.'.