Explanatory note

These Regulations further amend the Social Security (Contributions) Regulations 1979 (“the principal Regulations”), which make provision for the assessment and collection of contributions payable under Part I of the Social Security Contributions and Benefits Act 1992.

Regulation 2 amends regulation 19(1) of the principal Regulations (which specifies payments which are to be disregarded when calculating a person’s earnings) by inserting a new sub-paragraph (mm) relating to any gain from share options which is chargeable to tax by virtue of section 135 of the Income and Corporation Taxes Act 1988.

Because these Regulations are made in consequence of a defect in the Social Security Act 1998 (Commencement No. 1) Order 1998 (S.I. 1998/2209 (C.47)) as it relates to the date on which section 50(1) of the Social Security Act 1998 is brought fully into force, a copy of this Instrument is being issued free of charge to all known recipients of that Order.

These Regulations impose no costs on business.