Statutory Instrument 1998 No. 1869

The Personal Equity Plan (Amendment) Regulations 1998

---

© Crown Copyright 1998

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 Personal Equity Plan (Amendment) Regulations 1998 , ISBN 0 11 079412 5. 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.

"the principal Regulations" means the Personal Equity Plan Regulations 1989[4];

"regulation" means a regulation of the principal Regulations;

"securities" means any securities within the meaning of section 104 of the Taxation of Chargeable Gains Act 1992[5] or any relevant securities within the meaning of section 108 of that Act[6];

"the year 1999-00" means the year of assessment beginning on 6th April 1999.

Amendments to the principal Regulations
     3. In regulation 2(1)[7] - 

(a) in paragraph (b) in the definitions of "authorised unit trust", "fund of funds" and "securities fund" and in paragraph (c) in the definition of "securities company" for the references to "the Securities and Investments Board" there shall be substituted [a]references to "the Financial Services Authority";

(b) in paragraph (c) in the definition of "securities company" for the reference to "that Board" there shall be substituted [b]a reference to "that Authority".

     4. In regulation 4(1)[8] after the word "subscribe" there shall be inserted the words "before 6th April 1999".

     5. In regulation 8 the words from "but, so long as" to the end shall be omitted.

     6. Regulations 9[9], 10[10] and 10A[11] shall be omitted.

     7. In regulation 16(3)[12] paragraphs (iii), (iv) and (v) of sub-paragraph (b) shall be omitted.

     8. After regulation 17(2)[13] there shall be added - 

    " (3) A plan investor who, after subscribing to a plan at any time, ceases to be resident in the United Kingdom shall be treated for the purposes of determining his entitlement to, and to payment of, tax credits in respect of qualifying distributions so far as they relate to plan investments as if he were so resident."

     9. Regulation 19(5)[14] shall be omitted.

     10. Regulation 24(1)[15] shall be omitted.

     11. In regulation 24A(2)[16] for paragraphs (iii), (iv) and (v) of sub-paragraph (b) there shall be substituted - 

" (iii) the market value of the plan investments held under the plan, that value being determined either at 5th April in the year for which, or for part of which, the return is being made or any other valuation date in that year, not falling earlier than 5th October."

     12. In regulation 27[17] for paragraphs (2) to (3) there shall be substituted - 

    " (2) Sections 104 to 114 of the Taxation of Chargeable Gains Act 1992 shall apply for the purposes of pooling and identifying plan investments as if - 


(a) in section 106A[18] after subsection (11) there were added - 


    " (12) This section and sections 104, 110, 110A and 114 - 


(a) shall apply separately in relation to any securities which are held by a person as plan investments so long as they are so held, and

(b) shall apply in relation to any such securities which became plan investments by being transferred or renounced to a plan manager or to a nominee for a plan manager in the circumstances specified in regulation 4(2A)(a), (b) or (c) or 4A(2) as if they had been plan investments - 


(i) in the case of securities which were transferred or renounced in the circumstances specified in regulation 4(2A)(a), (b) or (c), and in the case of securities acquired by that person in accordance with the provisions of a savings-related share option scheme which were transferred in the circumstances specified in regulation 4A(2), from the date of their acquisition by him, or

(ii) in the case of securities appropriated to that person in accordance with the provisions of an approved profit sharing scheme which were transferred in the circumstances specified in regulation 4A(2), from the date when he directed the trustees to transfer the ownership of the securities to him or, if earlier, the release date in relation to those securities, and



(c) while applying separately to any such securities, shall have effect as if that person held them in a capacity other than that in which he holds any other securities of the same class whether under another such plan or otherwise.



    (13) In this section - 



(a) "plan", "plan investment" and "plan manager" have the same meanings as in the Personal Equity Plan Regulations 1989 and "regulation" means a regulation of those Regulations;

(b) "approved profit sharing scheme" has the same meaning as in Chapter IV of Part V of the Taxes Act and "savings-related share option scheme" has the meaning given by paragraph 1 of Schedule 9 to that Act."; and



(b) in section 110A[19] after subsection (5) there were added - 



    " (6) Where part of a section 104 holding is treated by section 106A (12)(b)(ii) as having been plan investments since a particular date - 


(a) an operative event shall be regarded as having occurred for the purposes of this section immediately before that date consisting of the disposal of the part of that section 104 holding which is so treated, and

(b) this section shall apply in relation to the occurrence of that operative event as it would have applied if it had always applied separately in relation to the part of that section 104 holding which is so treated."



    (3) Section 106A of the Taxation of Chargeable Gains Act 1992 shall apply for the purposes of identifying securities within the meaning of that section which are eligible to become plan investments as if - 



(a) in subsection (4), there were added at the beginning the words "Subject to subsection (14) below";

(b) in subsection (6), for the words "subsections (4) and (5) above" there were substituted the words "subsections (4), (5) and (14)"; and

(c) after subsections (12) and (13), as added by paragraph (2), there were added - 


    " (14) Where a person disposes of securities and securities of the same class which were eligible for transfer to a plan under regulation 4(2A)(a), (b) or (c) or 4A(2) were - 


(a) held by him immediately before that disposal,

(b) acquired by him on the same day as that disposal, or

(c) acquired by him within the period of thirty days after that disposal,



and those securities were acquired in the circumstances specified in that regulation, he shall be treated as having first disposed of any securities of that class held or acquired by him which were not so eligible."



    (4) Sections 127 to 131 of the Taxation of Chargeable Gains Act 1992 shall not apply in relation to ordinary shares, qualifying EC shares, other qualifying shares, shares in securities companies, units in funds of funds, units in securities funds or qualifying securities which are held under a plan if there is by virtue of any allotment for payment as is mentioned in section 126(2) of that Act a reorganisation affecting those shares or securities."

     13. In regulation 27(2A) after the words "as if" there shall be inserted the words "section 124(8) of the Finance Act 1998 had not been enacted and".


Graham Allen

Bob Ainsworth
Two of the Lords Commissioners of Her Majesty's Treasury

31st July 1998

[2] 1992 c.12; section 151 was amended by section 85 of the Finance Act 1993 (c.34), by section 64(2) of the Finance Act 1995 (c.4) and by section 75(6) of the Finance Act 1998 and was extended by section 123(7) of the Finance Act 1998.back

[3] 1998 c.36.back

[4] S.I. 1989/469, amended by S.I. 1990/678, 1991/733, 2774, 1992/623, 1993/756, 1995/1539, 3287, 1996/846, 1355, 1997/511, 1716.back

[5] Section 104 was amended by section 123 of the Finance Act 1998 in relation to any disposal on or after 6th April 1998 of any securities (whenever acquired).back

[6] Section 108 was amended by paragraph 59 of Schedule 14 and Part V of Schedule 41 to the Finance Act 1996 (c.8) in relation to the year 1996-97 and subsequent years of assessment and by section 124(4) and (5) of the Finance Act 1998 in relation to any disposal on or after 6th April 1998.back

[7] Paragraphs (b) and (c) were substituted by S.I. 1997/1716.back

[8] Amended by S.I. 1990/678, 1991/733, 2774.back

[9] Amended by S.I. 1990/678, 1991/2774, 1992/623, 1993/756.back

[10] Inserted by S.I. 1993/756.back

[11] Inserted by S.I. 1996/846.back

[12] Substituted by S.I. 1993/756 and amended by S.I. 1996/846, 1997/1716.back

[13] Amended by S.I. 1990/2231, 1991/733, 1996/846.back

[14] Added by S.I. 1993/756 and amended by S.I. 1996/846, 1997/1716.back

[15] Substituted by S.I. 1993/756.back

[16] Inserted by S.I. 1993/756 and amended by S.I. 1997/1716.back

[17] Amended by S.I. 1995/1539, 1996/846, 1997/1716.back

[18] Inserted by section 124(1) of the Finance Act 1998.back

[19] Inserted by section 125(2) of the Finance Act 1998.back

[b] Amended by Correction Slip. Page 2, in regulation 3(b), line 2: between the words "substituted" and "references" insert "a". back