# The Income Tax (Pay As You Earn) (Amendment) (No.2) Regulations 2011

S.I. 2011/1054 · made 4 April 2011

The Income Tax (Pay As You Earn) (Amendment) Regulations 2011 (“the Amendment Regulations”) amend the Income Tax (Pay As You Earn) Regulations 2003 (“the 2003 Regulations”) and come into force on 6th April 2011. These Regulations amend regulation 37 of the 2003 Regulations and come into force on 6th April 2011 immediately after the Amendment Regulations come into force. The amendment to regulation 37 of the 2003 Regulations made by these Regulations supersedes the amendment made to that regulation by the Amendment Regulations.

Made under: Income Tax (Earnings and Pensions) Act 2003 (Section 684); Taxes Management Act 1970 (Section 59A, Section 59B)

PDFs: Printed copy https://openlegislation.uk/income-tax-pay-as-you-earn-amendment-no2-regulations-2011/pdf/uksi_20111054_en.pdf; Explanatory Memorandum https://openlegislation.uk/income-tax-pay-as-you-earn-amendment-no2-regulations-2011/pdf/uksiem_20111054_en.pdf

## Introductory text

Income Tax
Made 4th April 2011
Laid before the House of Commons 4th April 2011
Coming into force 6th April 2011
The Commissioners for Her Majesty’s Revenue and Customs make the following Regulations, in exercise of the powers conferred by section 684 of the Income Tax (Earnings and Pensions) Act 2003 and sections 59A(10) and 59B(8) of the Taxes Management Act 1970.

## 1 Citation and commencement

These Regulations may be cited as the Income Tax (Pay As You Earn) (Amendment) (No.2) Regulations 2011.

## 2 Citation and commencement

These Regulations shall come into force on 6th April 2011, immediately after the Income Tax (Pay As You Earn) (Amendment) Regulations 2011 come into force.

## 3 Amendment of the Income Tax (Pay As You Earn) Regulations 2003

Regulation 37 (PAYE income paid after employment ceased) of the Income Tax (Pay As You Earn) Regulations 2003 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”.

## Signature

Steve Lamey
Dave Hartnett
Two of the Commissioners for Her Majesty’s Revenue and Customs
4th April 2011

## Explanatory note

(This note is not part of the Regulations)
The Income Tax (Pay As You Earn) (Amendment) Regulations 2011 (“the Amendment Regulations”) amend the Income Tax (Pay As You Earn) Regulations 2003 (“the 2003 Regulations”) and come into force on 6th April 2011. These Regulations amend regulation 37 of the 2003 Regulations and come into force on 6th April 2011 immediately after the Amendment Regulations come into force. The amendment to regulation 37 of the 2003 Regulations made by these Regulations supersedes the amendment made to that regulation by the Amendment Regulations.
Regulation 3 amends regulation 37(2) of 2003 Regulations by substituting the 0T code on a non-cumulative basis for the basic rate code at which deductions are to be made from PAYE income paid after employment has ceased. New regulation 37(2) is subject to new regulation 37(2A) which provides that in relation to payments made in connection with securities, an interest in securities and securities options tax must be deducted at the basic rate. New regulation 37(2B) defines those terms by reference to section 420 of the Income Tax (Earnings and Pensions) Act 2003.
A Tax Information and Impact Note covering this instrument will be published on the HMRC website at http//www.hmrc.gov.uk/the library/tiins.htm.

---
Source: https://www.legislation.gov.uk/uksi/2011/1054 (the official version)
Page: https://openlegislation.uk/income-tax-pay-as-you-earn-amendment-no2-regulations-2011
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.