Section 511 PAYE deductions to be made by trustees on shares ceasing to be subject to plan

United Kingdom

(1)

This section applies if, as a result of any shares ceasing to be subject to F1a Schedule 2 SIP—

(a)

there is an amount that counts as employment income of a participant by virtue of the SIP code, and

(b)

condition A or B is met.

(2)

Condition A is that F2an officer of Revenue and Customs —

(a)

F3is of the opinion that it is impracticable for the employer company (within the meaning of section 510) to make a PAYE deduction, and

(b)

accordingly F4directs that this section is to apply.

(3)

Condition B is that there is no company that qualifies as the employer company (within the meaning of that section).

(4)

If this section applies—

(a)

section 510(2) does not apply, and

(b)

the trustees must make a PAYE deduction in respect of the taxable equivalent as if the participant were a former employee of the trustees.

(5)

The “taxable equivalent” means an amount equal to that mentioned in subsection (1).

(6)

If this section applies, section 689 (employee of non-UK employer) does not apply.

Annotations

F1: Words in s. 511(1) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 11, 89 (with Sch. 8 paras. 90-96)
F2: Words in Act substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 102(1); S.I. 2005/1126, art. 2(2)(h)
F3: Word in s. 511(2)(a) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 114(a); S.I. 2005/1126, art. 2(2)(h)
F4: Word in s. 511(2)(b) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 114(b); S.I. 2005/1126, art. 2(2)(h)

F1: Pt. 7 heading substituted (with effect in accordance with Sch. 22 para. 2(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 2(1)

C1: Pt. 7: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)

F1: Word in Pt. 7 Ch. 6 title omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 2, 89 (with Sch. 8 paras. 90-96)