Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001
| Jurisdiction | UK Non-devolved |
| Citation | SI 2001/3629 |
| Year | 2001 |
2001 No. 3629
FINANCIAL SERVICES AND MARKETS
The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001
Made 8th November 2001
Laid before Parliament 8th November 2001
Coming into force 1st December 2001
The Treasury, in exercise of the powers conferred upon them by sections 426 to 428 of the Financial Services and Markets Act 20001, hereby make the following Order:
PART 1
INTRODUCTORY
Citation and commencement
1.—(1) This Order may be cited as the Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001.
(2) Subject to any express provision as to the effect of the provisions of this Order—
(a)
(a) Parts 1 and 2 shall come into force on 1st December 2001 immediately after the coming into force of sections 411 and 432(1) of, and Schedule 20 to, the Financial Services and Markets Act 2000;
(b)
(b) Part 3 shall come into force on 1st December 2001 immediately after the coming into force of Parts 1 and 2 of this Order.
Interpretation
2. In this Order—
“chargeable securities” has the meaning given by section 99(3) to (12) of the Finance Act 19862;
“instrument” has the meaning given by section 122(1) of the Stamp Act 18913;
“period of account” has the meaning given by section 834(1) of the Income and Corporation Taxes Act 19884.
PART 2
AMENDMENTS TO PRIMARY LEGISLATION
The Taxes Management Act 1970 (c. 9)
Returns and other information: stock jobbers' transactions
3. In section 21(7) of the Taxes Management Act 19705in the definition of “broker” for “of the Financial Services Act 1986” substitute “given by section 285(1)(a) of the Financial Services and Markets Act 2000”.
Composition agreements in relation to stamp duty
4.—(1) Amend section 33 of the Finance Act 19706(composition agreements by certain bodies in relation to stamp duty chargeable on transfers of securities) as follows.
(2) In subsection (1)—
(a)
(a) for “recognised stock exchange” in the first place where it occurs substitute “recognised investment exchange or recognised clearing house”;
(b)
(b) omit the definition of “recognised stock exchange”.
(3) In subsections (2)(b), (c) and (d), (4) and (5) for “stock exchange” substitute “recognised investment exchange or recognised clearing house”.
(4) After subsection (6) add—
“7 In this section “recognised investment exchange” and “recognised clearing house” have the meanings given by section 285(1) of the Financial Services and Markets Act 2000.”.
The Inheritance Tax Act 1984 (c. 51)
Settled property: qualifying interests in possession
5.—(1) Amend section 59 of the Inheritance Tax Act 1984 (conditions to be met in relation to qualifying interests in possession)7as follows.
(2) In subsection (3)(b) for the words from “either” to the end substitute
“has permission—
(i) under Part 4 of the Financial Services and Markets Act 2000, or
(ii) under paragraph 15 of Schedule 3 to that Act8(as a result of qualifying for authorisation under paragraph 12(1) of that Schedule),
to effect or carry out contracts of long-term insurance.”.
(3) After subsection (3) add—
“4 In subsection (3)(b) above “contracts of long-term insurance” means contracts which fall within Part II of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 20019.”.
(4) This Article has effect in relation to the making, on an anniversary or other occasion on or after 1st December 2001, of any charge to tax under section 64 or 65 of the Inheritance Tax Act 1984.
Introduction
6. Amend the Finance Act 1986 in accordance with Articles 7 to 12.
Stamp duty: intermediaries
7.—(1) Amend section 80B(2) (intermediaries: provisions supplementary to section 80A)10as follows.
(2) In the definition of “collective investment scheme” for “75 of the Financial Services Act 1986” substitute “235 of the Financial Services and Markets Act 2000”.
(3) For the definition of “insurance business” substitute—
““insurance business” means business which consists of the effecting or carrying out of contracts of insurance and, for the purposes of this definition, “contract of insurance” has the meaning given in Article 3(1) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;
“the operator”, in relation to a collective investment scheme, shall be construed in accordance with section 237(2) of the Financial Services and Markets Act 2000;”.
(4) For the definition of “trustee” and “the operator” substitute—
““trustee”, in relation to a collective investment scheme, means a trustee or a depositary within the meaning given in section 237(2) of the Financial Services and Markets Act 2000.”.
(5) This Article has effect in relation to any instrument executed on or after 1st December 2001.
Stamp duty: interpretation of sections 81, 82 and 84
8.—(1) Amend section 85(5) of the Finance Act 1986 (supplementary provisions) as follows.
(2) In paragraph (b) for “of the Financial Services Act 1986” substitute “given by section 285(1)(a) of the Financial Services and Markets Act 2000”.
(3) In paragraph (c) for “of the Financial Services Act 1986” substitute “given by section 285(1)(b) of the Financial Services and Markets Act 2000”.
(4) This Article has effect in relation to any instrument executed on or after 1st December 2001.
Stamp duty reserve tax: intermediaries
9.—(1) Amend section 88B(2) (provisions supplementary to section 88A)11as follows.
(2) In the definition of “collective investment scheme” for “75 of the Financial Services Act 1986” substitute “235 of the Financial Services and Markets Act 2000”.
(3) For the definition of “insurance business” substitute—
““insurance business” means business which consists of the effecting or carrying out of contracts of insurance and, for the purposes of this definition, “contract of insurance” has the meaning given by Article 3(1) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;
“the operator”, in relation to a collective investment scheme, shall be construed in accordance with section 237(2) of the Financial Services and Markets Act 2000;”.
(4) For the definition of “trustee” and “the operator” substitute—
““trustee”, in relation to a collective investment scheme, means a trustee or a depositary within the meaning given in section 237(2) of the Financial Services and Markets Act 2000.”.
(5) This Article has effect in relation to—
(a)
(a) an agreement to transfer chargeable securities which is not conditional, if the agreement is made on or after 1st December 2001;
(b)
(b) a conditional agreement to transfer such securities, if the condition is satisfied on or after that date.
Stamp duty reserve tax: interpretation
10.—(1) In section 99(5B) (interpretation)12for the words from “In this subsection” to the end substitute “In this subsection “an authorised unit trust scheme”, “collective investment scheme” and “an open-ended investment company” have the same meanings as in Part 17 of the Financial Services and Markets Act 2000.”.
(2) This Article has effect in relation to—
(a)
(a) an agreement to transfer chargeable securities which is not conditional, if the agreement is made on or after 1st December 2001;
(b)
(b) a conditional agreement to transfer such securities, if the condition is satisfied on or after that date.
Inheritance tax: power to amend definitions of “market maker”
11. In sections 106(4)(a) and 107(4)(a) (power to amend sections 105(7) and 234(4) of the Inheritance Tax Act 1984) for “of the Financial Services Act 1986” substitute “given by section 285(1)(a) of the Financial Services and Markets Act 2000”.
Power to modify section 21 of the Taxes Management Act 1970: definition of recognised investment exchange
12. In paragraph 10(2) of Schedule 18 (definition of recognised investment exchange) for “of the Financial Services Act 1986” substitute “given by section 285(1)(a) of the Financial Services and Markets Act 2000”.
The Income and Corporation Taxes Act 1988 (c. 1)
Introduction
13. Amend the Income and Corporation Taxes Act 1988 in accordance with Articles 14 to 52.
Transfers of insurance business
14.—(1) Amend section 12 (basis of, and periods for, assessment)13, as follows.
(2) In subsection (7A) for the words from “there” to “1982” substitute “an insurance business transfer scheme has effect to transfer from a company to another person business which consists of the effecting or carrying out of contracts of long-term insurance”.
(3) After subsection (7A) insert—
“7B In subsection (7A) above—
“contracts of long-term insurance” means contracts which fall within Part II of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001; and
“insurance business transfer scheme” means a scheme falling within section 105 of the Financial Services and Markets Act 2000 and—
(a) includes an excluded scheme falling within Case 2, 3 or 4 of subsection (3) of that section, but
(b) does not include a scheme for the transfer of business carried on by one or members or former underwriting...
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