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(1) This section applies where—
(a) a notice is given in accordance with section 1 of this Act in respect of any right;
(b) the person or one of the persons who gives that notice is a person who (apart from this Act) was liable, or would have become liable, by virtue of an election under paragraph 3B(1) of Schedule 1 to the Contributions and Benefits Act, to pay secondary Class 1 contributions in respect of any gain arising on the exercise, assignment or release of that right; and
(c) that person (“the earner”) becomes liable to pay a special contribution under section 2 of this Act in respect of that right.
(2) Subject to subsection (3) of this section, section 187A of the Income and Corporation Taxes Act 1988 (c 1) (relief for secondary Class 1 contributions payable by earners) shall have effect, and (where it would not otherwise be the case) be deemed always to have had effect—
(a) as if the election mentioned in subsection (1)(b) of this section were in force, with the effect mentioned in subsection (1)(b) of that section, at any time when the earner becomes or became chargeable to tax on a gain realised on the exercise, assignment or release of the right, and
(b) as if the reference in subsection (2)(b) of that section to any liability that has become the earner's by virtue of that election included any liability of his, in consequence of the giving of the notice under section 1 of this Act, to pay a special contribution under section 2 of this Act.
(3) Nothing in section 187A of the Income and Corporation Taxes Act 1988 shall have the effect, or be deemed to have had the effect, of conferring any relief in respect of any liability which is prevented from arising, or is treated as not having arisen, by virtue of subsection (1)(a) or (b) or (4) of section 2 of this Act.
(4) In section 203FB(6A) of the Income and Corporation Taxes Act 1988 (application of PAYE provisions) the reference to relief likely to be available under section 187A shall be treated as not including a reference to any relief available by virtue of this section in respect of liability to pay a special contribution under section 2 of this Act.
Royal Assent: 11 May 2001: (no specific commencement provision).