Statutory Instrument 1996 No. 1182

The Lloyd's Underwriters (Gilt-edged Securities) (Periodic Accounting for Tax on Interest) (Amendment No. 2) Regulations 1996

---

© Crown Copyright 1996

Statutory Instruments printed from this website are printed under the superintendence and authority of the Controller of HMSO being the Queen's Printer of Acts of Parliament.

The legislation contained on this web site is subject to Crown Copyright protection. It may be reproduced free of charge provided that it is reproduced accurately and that the source and copyright status of the material is made evident to users.

It should be noted that the right to reproduce the text of Statutory Instruments does not extend to the Queen's Printer imprints which should be removed from any copies of the Statutory Instrument which are issued or made available to the public. This includes reproduction of the Statutory Instrument on the Internet and on intranet sites. The Royal Arms may be reproduced only where they are an integral part of the original document.

The text of this Internet version of the Statutory Instrument which is published by the Queen's Printer of Acts of Parliament has been prepared to reflect the text as it was Made. A print version is also available and is published by The Stationery Office Limited as the The Lloyd's Underwriters (Gilt-edged Securities) (Periodic Accounting for Tax on Interest) (Amendment No. 2) Regulations 1996, ISBN 0110547012. The print version may be purchased by clicking here. Braille copies of this Statutory Instrument can also be purchased at the same price as the print edition by contacting TSO Customer Services on 0870 600 5522 or e-mail:customer.services@tso.co.uk.

Further information about the publication of legislation on this website can be found by referring to the Frequently Asked Questions.

To ensure fast access over slow connections, large documents have been segmented into "chunks". Where you see a "continue" button at the bottom of the page of text, this indicates that there is another chunk of text available.

1996 No. 1182

INCOME TAX

The Lloyd's Underwriters (Gilt-edged Securities) (Periodic Accounting for Tax on Interest) (Amendment No. 2) Regulations 1996

The Treasury, in exercise of the powers conferred on them by section 51B(1) to (4) of the Income and Corporation Taxes Act 1988^[1] and paragraph 4 of Schedule 6 to the Finance Act 1996^[2], hereby make the following Regulations:

Citation, commencement and effect
    1.—(1)  These Regulations may be cited as the Lloyd's Underwriters (Gilt-edged Securities) (Periodic Accounting for Tax on Interest) (Amendment No. 2) Regulations 1996 and shall come into force on 21st May 1996.

    (2)  These Regulations have effect in relation to all payments of interest on relevant gilt-edged securities made without deduction of tax on or after 6th April 1996.

Interpretation
    2.    In these Regulations "the principal Regulations" means the Lloyd's Underwriters (Gilt-edged Securities) (Periodic Accounting for Tax on Interest) Regulations 1995^[3], and "regulation" means a regulation of those Regulations.

Amendments to the principal Regulations
    3.    In regulation 5(1)—
 (a) for the words "paragraph (2)" there shall be substituted the words "paragraphs (2) and (2A)";
 (b) for the words "basic rate" there shall be substituted the words "lower rate".

    4.    In regulation 5(2) for the words "Where the basic rate" there shall be substituted the words "Subject to paragraph (2A) below, where the lower rate".

    5.    After regulation 5(2) there shall be inserted the following paragraph—
"  (2A)  In the case of the quarter ending on 30th June 1996, the amount of income tax for which the managing agent is to be accountable pursuant to paragraph (1) above for that quarter shall be ascertained after considering the period before 6th April 1996 separately from the period after 5th April 1996; and "income tax nominally attributable to the amount of excess gilt interest paid" in regulation 6(1) and (3) shall be construed accordingly."

    6.    In regulation 7(2) for the words "basic rate" there shall be substituted the words "lower rate".

Simon Burns

Liam Fox

Two of the Lords Commissioners of Her Majesty's Treasury

29th April 1996

These Regulations amend the Lloyd's Underwriters (Gilt-edged Securities) (Periodic Accounting for Tax on Interest) Regulations 1995 (S.I. 1995/3225) to take account of an amendment made to section 51B of the Income and Corporation Taxes Act 1988 by paragraph 4 of Schedule 6 to the Finance Act 1996 (c. 8) which provides for interest to be charged to tax at the lower rate instead of at the basic rate in relation to the year 1996-97 and subsequent years of assessment.

These Regulations have effect in relation to all payments of interest on relevant gilt-edged securities made without deduction of tax on or after 6th April 1996; and an additional paragraph (paragraph (2A)) has been inserted in regulation 5 to provide for the case of the quarter ending on 30th June 1996 which accordingly includes 6th April 1996. Authority for the retrospective effect of these Regulations is given by paragraph 4(2) of Schedule 6 to the Finance Act 1996.

[1] 1988 c. 1; section 51B was inserted by section 78(1) of the Finance Act 1995 (c. 4) and amended by paragraph 4(1) of Schedule 6 to the Finance Act 1996 (c. 8). back

[2] 1996 c. 8. back

[3] S.I. 1995/3225, to which there are amendments not relevant to these Regulations. back