{
  "url": "https://openlegislation.uk/social-security-contributions-statutory-maternity-pay-and-statutory-sick-pay-miscellaneous-amendments-regulations-1999/regulation-3",
  "json_url": "https://openlegislation.uk/social-security-contributions-statutory-maternity-pay-and-statutory-sick-pay-miscellaneous-amendments-regulations-1999/regulation-3.json",
  "legislation": "uksi/1999/567",
  "legislation_title": "The Social Security Contributions, Statutory Maternity Pay and Statutory Sick Pay (Miscellaneous Amendments) Regulations 1999",
  "legislation_url": "https://openlegislation.uk/social-security-contributions-statutory-maternity-pay-and-statutory-sick-pay-miscellaneous-amendments-regulations-1999",
  "path": "regulation/3",
  "kind": "regulation",
  "number": "3",
  "heading": "Amendment of regulation 19 of the principal Regulations",
  "text": "(1) Regulation 19 of the principal Regulations (payments to be disregarded) shall be amended in accordance with the following provisions of this regulation.\n(2) In paragraph (1)—\n(a) omit sub-paragraph (mm);\n(b) after sub-paragraph (zg), add—\n“(zh) a payment by way of—\n(i) a gain realised by the exercise of a right to acquire shares in a body corporate chargeable to tax under Schedule E by virtue of section 135 of the Income and Corporation Taxes Act 1988 (gains by directors and employees from share options),\n(ii) the grant of a right to acquire shares obtained on, or after, 6th April 1999 which is capable of being exercised more than ten years after it is obtained,\nwhere that right and those shares are not readily convertible assets;\n(zi) a payment by way of the grant of a right obtained on, or after, 6th April 1999 to acquire shares which is not capable of being exercised more than ten years after it is obtained;\n(zj) a payment by way of the conferment of a conditional interest in shares where that interest will, or might, remain only conditional until a time more than five years after its acquisition, which is acquired pursuant to the exercise of a right to acquire shares granted on, or after, 6th April 1999 where—\n(i) the conferment of that interest would otherwise be chargeable to tax by virtue of section 135 of the Income and Corporation Taxes Act 1988, and\n(ii) the acquisition of that interest would be treated as earnings by virtue of regulation 17AB of these Regulations (further provision as to payments to be treated as earnings);\n(zk) a payment by way of the acquisition of an interest in shares pursuant to a right to acquire shares granted before 9th April 1998 where the acquisition of that interest would be treated as earnings by virtue of regulation 17AB of these Regulations;\n(zl) a payment by way of a gain realised by the assignment or release of a right (“the first right”) to acquire shares in a body corporate (“the first body corporate”) chargeable to tax under Schedule E by virtue of section 135 of the Income and Corporation Taxes Act 1988 where a subsequent right—\n(i) forms all, or part of, the consideration given for the assignment or release of the first right, and\n(ii) the subsequent right is—\n(aa) a right to acquire shares in the first body corporate or any other body corporate; and\n(bb) not treated as consideration for the assignment or release of the first right by virtue of section 136(1) of the Income and Corporation Taxes Act 1988,\nbut this sub-paragraph shall not apply where the first right was acquired before 6th April 1999 and the total discount on the total market value of the subsequent right is substantially greater than the total discount on the total market value of the first right at the time of its assignment or release;\n(zm) a payment by way of a gain realised by the exercise, or by the assignment or release, of a right obtained before 6th April 1999 to acquire shares in a body corporate chargeable to tax under Schedule E by virtue of section 135 of the Income and Corporation Taxes Act 1988, unless—\n(i) that right (“the subsequent right”)—\n(aa) forms all, or part of, the consideration given for the assignment or release of a right to acquire shares in a body corporate (“the first right”);\n(bb) is a right to acquire shares in the first body corporate or any other body corporate;\n(cc) is not treated as consideration for the assignment or release of the first right by virtue of section 136(1) of the Income and Corporation Taxes Act 1988; and\n(ii) at the time of its acquisition, the total market value of the subsequent right was not similar to the total market value of the first right immediately before its assignment or release.”.\n(3) After paragraph (10), add—\n“(11) For the purposes of paragraphs (1)(zh), (zl) and (zm) and this paragraph of this regulation—\n(a) “body corporate” includes—\n(i) a body corporate constituted under the law of a country or territory outside the United Kingdom, and\n(ii) an unincorporated association wherever constituted;\n(b) “total discount” means the difference between the total value of the exercise price of the shares that are the subject of the right in question and the total market value of that right;\n(c) “total market value” means the price which the shares which are the subject of the right in question might reasonably be expected to fetch on sale in the open market;\n(d) the total market value of the subsequent right is similar to the total market value of the first right if it is not substantially greater than that latter right.”.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "Sub-paragraph (mm) was inserted by regulation 2 of S.I. 1998/2320."
    },
    {
      "type": "footnote",
      "label": "f2",
      "text": "Sub-paragraph (zg) was added by regulation 6(4) of S.I. 1998/2211."
    },
    {
      "type": "footnote",
      "label": "f3",
      "text": "Regulation 17AB was inserted by regulation 4 of S.I. 1998/2211."
    },
    {
      "type": "footnote",
      "label": "f4",
      "text": "Paragraph (10) was added by regulation 6(9) of S.I. 1998/2211."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1999/567/regulation/3",
    "retrieved_at": "2026-10-29T10:59:13.350017+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}