Explanatory note

These Regulations amend the Social Security (Contributions) Regulations 2001 (S.I. 2001/1004).

Regulation 1 provides for the citation and commencement of this instrument.

Regulation 2 amends paragraph 7 of Schedule 4 to the 2001 Regulations. It replaces sub-paragraphs (9), (11) and (12). The existing sub-paragraph (9) is replaced by a new sub-paragraph, whilst sub-paragraphs (11) and (12) are replaced by four new sub-paragraphs ((11), (11A), (12) and (12A)).

The amendments reflect the extension of the recovery mechanism provided for in paragraph 3 of Schedule 1 to each of the Social Security Contributions and Benefits Act 1992 and the Social Security Contributions and Benefits (Northern Ireland) Act 1992 by sections 1 and 2 of the National Insurance and Statutory Payments Act 2004 (c. 3). They enable an employer or former employer, with the prior written consent of the employee or former employee, to retain and sell employment-related securities, or securities derived from the exercise of an employment-related securities option, in order to discharge the liability for primary Class 1 contributions on earnings comprising, or derived from, employment-related securities.

These Regulations do not impose new costs on business.