Finance Act 2012

Chapter 3

Income Levy and Income Tax

Share-based remuneration.

4.— (1) The Principal Act is amended—

(a) in section 128A(4A)(d)(i)(II) by substituting “half of the aggregate” for “the aggregate”,

(b) in section 128E(6)(a) by substituting “for the purposes of income tax, income levy and universal social charge” for “income tax purposes”, and

(c) in section 985A by inserting the following after subsection (4A):

“(4B) Where—

(a) an employer pays emoluments to an employee in the form of shares (including stock),

(b) subsection (4) applies, and

(c) the employee has not made good to the employer the amount of the income tax required to be deducted under this Part and regulations made under this Part in respect of those shares,


(i) the employer shall be entitled to withhold and to realise sufficient shares to meet that income tax liability,

(ii) the employee shall allow such withholding as is referred to in paragraph (i), and

(iii) the employer shall be acquitted and discharged of such withholding as if the amount of income tax required to be deducted had been paid to the employee.”.

(2) Paragraph (b) of subsection (1) shall be deemed to have effect as on and from—

(a) 1 January 2009 in the case of income levy,

(b) 1 January 2011 in the case of universal social charge, and

(c) 1 January 2012 in the case of income tax.