Statutory Instrument 1990 No. 2552

The Income Tax (Stock Lending) (Amendment) Regulations 1990

---

© Crown Copyright 1990

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 Income Tax (Stock Lending) (Amendment) Regulations 1990, ISBN 0110056671. 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.

1990 No. 2552

INCOME TAX

The Income Tax (Stock Lending) (Amendment) Regulations 1990

The Treasury, in exercise of the powers conferred on them by section 129 of the Income and Corporation Taxes Act 1988^[1], hereby make the following Regulations:

Citation and commencement
    1.    These Regulations may be cited as the Income Tax (Stock Lending) (Amendment) Regulations 1990 and shall come into force on 7th January 1991.

Interpretation
    2.    In these Regulations "the principal Regulations" means the Income Tax (Stock Lending) Regulations 1989^[2] and "regulation" means a regulation of those Regulations.

Amendments to the principal Regulations
    3.—(1)  In regulation 2(1)—
 (a) in the definition of "gilt-edged securities"—
 (i) at the end of paragraph (a) there shall be added the word "and", and
 (ii) paragraph (c) and the word ", and" at the end of paragraph (b) shall be omitted;
 (b) in the definition of "other United Kingdom securities"—
 (i) after the words "in respect of which" there shall be inserted the words "at the time the arrangement in question is made";
 (ii) in condition (a) the words ", at the time the arrangement in question is made," shall be omitted; and
 (iii) for condition (b) there shall be substituted—
"(b) that, where the shares or stock were issued by a government or public or local authority of a country or territory outside the United Kingdom, or by any other body of persons not resident in the United Kingdom, such shares or stock are registered in a register kept in the United Kingdom by or on behalf of that government, authority or body of persons;" ;

 (c) in the definition of "overseas securities" for paragraph (a) there shall be substituted—
"(a) stocks, shares and other securities issued by a government or public or local authority of a country or territory outside the United Kingdom, or by any other body of persons not resident in the United Kingdom, which are not other United Kingdom securities, and" .


    (2)  In regulation 6(3)(b) after the words "arrangement as" there shall be inserted the words "an agent or".

    (3)  In regulation 7—
 (a) in paragraph (1) for sub-paragraphs (d) and (e) there shall be substituted—
"(d) that the arrangement includes a provision for accounting to the Board for a sum representing income tax on any payment made by A to B as compensation for B's failure to receive a dividend or other annual payment which he would have received if he had not entered into the arrangement." ;

 (b) in paragraph (2)—
 (i) in sub-paragraph (b) after the words "arrangement as" there shall be inserted the words "an agent or";
 (ii) for sub-paragraph (d) there shall be substituted—
"(d) that the arrangement includes a provision for accounting to the Board for a sum representing income tax on any payment made by B to C as compensation for C's failure to receive a dividend or other annual payment which he would have received if he had not entered into the arrangement." ;

 (c) in paragraph (3) the definition of "held overseas" shall be omitted.

Sydney Chapman

Irvine Patnick

Two of the Lords Commissioners of Her Majesty's Treasury

13th December 1990

These Regulations, which come into force on 7th January 1991, amend the Income Tax (Stock Lending) Regulations 1989. The principal changes are to the definition of "other United Kingdom securities" and to the conditions relating to the transfer of overseas securities.

The definition of "other United Kingdom securities" is amended by replacing the condition that, where such securities are issued by a non-resident body of persons, dividends payable out of those securities are to constitute relevant foreign dividends for the purposes of section 123 of the Income and Corporation Taxes Act 1988 by a condition that, where such securities are issued by a government or public or local authority outside the United Kingdom, or other non-resident body of persons, they are held on a register in the United Kingdom at the time the stock lending arrangements are made.

The conditions relating to the transfer of overseas securities are amended by replacing the conditions that such securities are held overseas and delivered outside the United Kingdom by a requirement that the stock lending arrangement contains a provision for accounting to the Commissioners of Inland Revenue for tax on payments made by the "borrower" to the "lender" in lieu of the dividends that the lender would otherwise have received on those securities.

[1] 1988 c. 1 back

[2] S.I. 1989/1299 back