ERSM110530 - Securities Options

Deductible amounts: grant between 6 April 1999 to 19 May 2000: special contribution met by employee

For share options granted in the period 6 April 1999 to 19 May 2000, a measure was introduced in the Social Security Contributions (Share Options) Act 2001 which allowed employers to limit their NICs liability based on the value of their shares as at 7 November 2000. In this situation, the amount paid by the employee is a deductible amount provided that the person liable to this “special contribution”:

• gave notice in respect of the option to Inland Revenue before 11 August 2001 and
• paid the contribution within that time limit or within a further period allowed by the Inland Revenue.

At the time of writing, in mid 2005, it is unlikely that any more claims will be made for a further period to be allowed. Any claim should be referred to the Employee Shares and Securities Unit, Room G49, 100 Parliament Street, SW1A 2BQ