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Amendments to the Social Security Contributions (Share Options) Bill

Social Security Contributions (Share Options) Bill


MARSHALLED
LIST OF AMENDMENTS
TO BE MOVED
IN COMMITTEE


[Amendments marked * are new or have been altered]

Amendment
No.

 

Clause 3

 

THE LORD McINTOSH OF HARINGEY

1Page 5, line 5, leave out "(assuming it to be exercisable at that time)"
 

THE LORD HIGGINS

2Leave out Clause 3 and insert the following new Clause—
  "Special provisions for roll-overs
(1)  In this section—
(a)  an "original right" is a right to acquire shares in a body corporate granted after 5th April 1999 and before 20th May 2000;
(b)  a "replacement right" is a right to acquire shares in that or any other body corporate granted or acquired in consideration of the assignment or release of an original right (whether comprising all or part of the consideration for that assignment or release);
(c)  a "parity exchange" occurs on the grant or acquisition of a replacement right where the gain which could reasonably be expected to be made on the exercise of that right immediately after the grant or acquisition of that right (on the assumption, if necessary, that that right was capable of being exercised at that time), together with the value of any other consideration given for the assignment or release of the original right, is not manifestly greater than the gain which could reasonably be expected to have been made on the exercise of the original right immediately prior to the assignment or release of that right (on the assumption, if necessary, that the original right had been capable of being exercised at that time);
(d)  an "enhanced exchange" occurs on the grant or acquisition of a replacement right where a parity exchange does not occur; and
(e)  the gain which might be reasonably expected to be made on the exercise of a right to acquire shares shall be determined in accordance with section 135(3)(a) of the Income and Corporation Taxes Act 1988 (c. 1).
(2)  On a parity exchange—
(a)  any notices made, or deemed to have been made, under this Act in respect of the original right shall be deemed to have been made in respect of, and shall have the same effect in relation to, the replacement right and any other consideration given for the assignment or release of the original right; and
(b)  any special contribution paid, or deemed to have been paid, under this Act in respect of the original right shall be deemed to have been paid in respect of, and shall have the same effect in relation to, the replacement right and any other consideration given for the assignment or release of the original right.
(3)  On an enhanced exchange the consideration given for the assignment or release of the original right shall be apportioned on a just and equitable basis into two parts, the first of which representing all of those terms of the replacement right and of the other consideration, if any, given for the assignment or release of the original right which could have been granted, required or given so as to give rise to a parity exchange (to which part subsection (2) above shall apply) and the second of which representing the remaining terms of the replacement right, and of the other consideration, if any, given for the assignment or release of the original right (to which part the provisions of this Act shall not apply).
(4)  For the purposes of subsection (3) above, on any partial exercise, assignment or release of the replacement right any gain arising shall be treated as comprised in the second part in priority to the first part.
(5)  Where a replacement right to which the foregoing provisions of this section apply is assigned or released for a consideration which comprises or includes a subsequent replacement right, the first mentioned replacement right shall be treated as if it were an original right, and the subsequent replacement right shall be treated if it were a replacement right within the meaning of subsection (1)(b) above, and subsections (2) and (3) above shall apply accordingly on the assignment or release in question.
(6)  In subsection (4) above, references to a subsequent replacement right are references to any right to acquire shares in a body corporate which are or have been obtained by any person as, or as part of, the consideration for the assignment or release by him of a replacement right or of a subsequent replacement right.
(7)  Where prior to the coming into force of this Act payments have been made in respect of Class 1 contributions due on the exercise of any replacement right, then on a claim being made by the person who paid them all such repayments of those contributions shall be made, less any amount representing the special contributions which would be due under section 2 above."
 

Clause 5

 

THE LORD McINTOSH OF HARINGEY

3Page 8, line 23, at end insert—
"(   )  Where any assumption that a right has been exercised at any time is made for the purposes of any provision of this Act, that assumption shall be taken to include the assumption that that right was capable of being exercised at that time."
4Page 8, line 34, leave out "this section" and insert "the provisions of this Act"

 
 
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10 May 2001