{
  "url": "https://openlegislation.uk/income-tax-employments-notional-payments-amendment-regulations-1998/note",
  "json_url": "https://openlegislation.uk/income-tax-employments-notional-payments-amendment-regulations-1998/note.json",
  "legislation": "uksi/1998/1891",
  "legislation_title": "The Income Tax (Employments) (Notional Payments) (Amendment) Regulations 1998",
  "legislation_url": "https://openlegislation.uk/income-tax-employments-notional-payments-amendment-regulations-1998",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Regulations)\nThese Regulations amend the Income Tax (Employments) (Notional Payments) Regulations 1994 (S.I. 1994/1212) (“the principal Regulations”).\nRegulation 1 provides for citation and commencement, and regulation 2 for interpretation.\nRegulation 3 makes an amendment of a drafting nature to regulation 2 of the principal Regulations.\nRegulation 4 amends regulation 3 of the principal Regulations (previously amended by S.I. 1996/2969) which excludes from the scope of section 203F of the Income and Corporation Taxes Act 1988 (“the 1988 Act”) tradeable assets provided to employees in the form of shares in an employer company (or in a company controlling an employer company) acquired under an approved share option scheme or profit sharing scheme or on the exercise of rights over shares obtained before 27th November 1996. The amendment made by these Regulations extends the exclusion so as to cover cases where such shares would otherwise be assets the enhancement of which constitutes assessable income under section 203FA (assets with enhanced value) or constitutes assessable income under section 203FB (gains from share options etc.) of the 1988 Act. Sections 203FA and 203FB were inserted in the 1988 Act by sections 66(1) and 67(1) of the Finance Act 1998.\nRegulation 5 inserts new regulations 3A and 3B in the principal Regulations. Regulation 3A specifies the New York Stock Exchange as a market for the purposes of the definition of “readily convertible asset” in section 203F of the 1988 Act. Regulation 3B excludes from section 203FA of the 1988 Act any enhancement of value of shares in an employer company (or in a company controlling an employer company) arising on the acquisition of shares or any right over or interest in shares under an approved share option scheme or profit sharing scheme or where the shares were acquired by the employee on the exercise of a right obtained before 27th November 1996.\nRegulation 6 excepts from regulation 7 and 8 of the principal Regulations notional payments falling within regulation 8A of those Regulations (inserted by regulation 7 of these Regulations).\nRegulation 7 inserts regulation 8A in the principal Regulations which makes provision for accounting for income tax in respect of notional payments made in the period between 6th April 1998 and 31st July 1998 where the notional payments fall within the amendments made by section 65, 68 or 69 of the Finance Act 1998 to section 203C, 203F, 203G, 203H or 203I of the 1988 Act, or within section 203FA or 203FB of the 1998 Act.\nRegulation 8 inserts regulation 12A in the principal Regulations which makes a similar provision for accounting for income tax as that made by regulation 7 in relation to a payment of assessable income deemed to be made by section 203FB(3)(a) of the 1988 Act on an assignment or release of an option to acquire shares.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1998/1891/note",
    "retrieved_at": "2026-10-29T11:24:00.029460+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}