Regulation 3 Matters to be contained in notices under section 1

(1)

A notice under section 1 must contain the following—

(a)

the name and address of the person giving the notice;

(b)

the name and national insurance number of the person who has obtained a right to acquire shares in respect of which the notice is given;

(c)

the date on which the right was granted;

(d)

the amount that a person might reasonably have expected to have obtained from a sale in the open market on 7th November 2000 of each share to which the right relates together with a statement as to whether or not that amount has been agreed with Inland Revenue Shares Valuation;

(e)

the price at which each share may be acquired by exercise of the right;

(f)

any amount paid in consideration of the grant of the right, or, in cases where section 3 applies, the grant of the original right, by the person who has obtained it;

(g)

the amount in respect of which Class 1 contributions would have been payable by virtue of section 4(4)(a) of the Contributions and Benefits Act^f1 if the right had been exercised in full on 7th November 2000 without the giving of any further consideration for the shares acquired by exercise of that right;

(h)

the amounts of any Class 1 contributions that have already been paid to the Inland Revenue in respect of any liability to pay Class 1 contributions in respect of any gain realised on an exercise, assignment or release of the right after 7th November 2000 and before the day on which the Act is passed; and

(i)

confirmation that the person giving the notice understands that the notice is irrevocable.

(2)

In cases where an election for the purposes of paragraph 3B(1) of Schedule 1 to the Contributions and Benefits Act^f2 which is in force on the day of the notice would relate to any gain realised on an exercise, assignment or release of the right on the day of the notice, the notice must also contain the following—

(a)

a statement as to whether the person paying the special contribution is the person on whom (apart from the Act) any liability to pay secondary Class 1 contributions in respect of that gain would fall by virtue of the election;

(b)

if different parts of that liability would fall (apart from the Act) on different persons by virtue of the election, a statement as to how much of the special contribution is being paid by the secondary contributor on whom (apart from the Act) that liability would fall if no election were in force; and

(c)

if the notice is given—

(i)

by the secondary contributor on whom (apart from the Act) any liability to pay secondary Class 1 contributions in respect of that gain would fall if no election were in force,

(ii)

on behalf of the person on whom (apart from the Act) that liability would fall by virtue of the election,

a declaration that that person has consented to the notice being given by the secondary contributor.

(3)

In cases where section 3 applies, the notice must also contain confirmation that the person on whom any liability to pay Class 1 contributions in respect of any gain realised on the exercise, assignment or release of the replacement right referred to in that section or any subsequent replacement right would fall understands that section 2(1)(a) and (b) does not—

(a)

prevent any such liability in respect of any such gain; or

(b)

have the effect of deeming any such liability not to have arisen on any such gain.

Annotations

Footnotes

f1: Section 4(4) was substituted, for Great Britain, by section 50(1) of the Social Security Act 1998, and, for Northern Ireland, by Article 47(1) of the Social Security (Northern Ireland) Order 1998.
f2: Paragraph 3B was inserted, for Great Britain, by section 77(2), and, for Northern Ireland, by section 81(2) of the Child Support, Pensions and Social Security Act 2000.