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

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Source: https://www.legislation.gov.uk/uksi/2011/1054/regulation/3 (the official version)
Page: https://openlegislation.uk/income-tax-pay-as-you-earn-amendment-no2-regulations-2011/regulation-3
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.