Income Tax (Earnings and Pensions) Act 2003 section 482

Relief for special contribution met by employee

Section 482 provides income tax relief where a special National Insurance contribution was paid in connection with an employment-related securities option, reducing the amount that counts as employment income when a chargeable event occurs.

• Relief applies where a notice about the securities option was given to HMRC before 11 August 2001 under the Social Security Contributions (Share Options) Act 2001
• The person who gave the notice must have been liable (or would have become liable) to pay secondary Class 1 National Insurance contributions in respect of the chargeable event, by virtue of an election to transfer that liability
• That person must have paid a special contribution under the 2001 Act in respect of the option, either before 11 August 2001 or within any extended period allowed by HMRC
• The relief equals the amount of the special contribution paid and is given as a deduction from the amount that would otherwise count as employment income