http://www.legislation.gov.uk/ukpga/2013/33/schedule/9/crossheading/exclusion-of-small-business-deposits-from-funding-limit/2013-12-18Financial Services (Banking Reform) Act 2013An Act to make further provision about banking and other financial services, including provision about the Financial Services Compensation Scheme; to make provision for the amounts owed in respect of certain deposits to be treated as a preferential debt on insolvency; to make further provision about payment systems and securities settlement systems; to make provision about the accounts of the Bank of England and its wholly owned subsidiaries; to make provision in relation to persons providing claims management services; and for connected purposes.texttext/xmlenStatute Law Database2024-09-062013-12-18SCHEDULESSCHEDULE 9Building societiesExclusion of small business deposits from funding limit21

Section 7 (the funding limit) is amended as follows.

2

In subsection (3), omit the “and” at the end of paragraph (a) and after that paragraph insert—

aa

subject to subsection (3A), the principal of, and interest accrued on, sums deposited with the society or any subsidiary undertaking of the society by a small business (see subsection (10));

.

3

After subsection (3) insert—

3A

In respect of any day by reference to which the value of X falls to be calculated for the purposes of subsection (1) in relation to the society, the total amount to be disregarded under subsection (3)(aa) may not exceed 10% of the amount that would, in the absence of subsection (3)(aa), be the value of X on that day.

4

After subsection (6) insert—

6ZA

Where a person declares that the person is a small business, the person shall, unless the contrary is shown, be conclusively presumed for the purposes of this section to be a small business.

5

After subsection (9) insert—

10

In this section “small business” means any person (other than an individual acting as a sole trader) carrying on a business which had a turnover in the relevant financial year of less than £1,000,000.

11

For the purposes of subsection (10)—

a

the “relevant financial year”, in relation to any day by reference to which the value of X falls to be calculated for the purposes of subsection (1) in relation to a building society, means the last financial year ending before that day;

b

turnover”, in relation to a small business, means the amount derived from the provision of goods and services falling within the business's ordinary activities, after deduction of trade discounts, value added tax and any other taxes based on the amounts so derived;

c

in respect of any relevant financial year, the reference to £1,000,000 includes the equivalent amount in any other currency, calculated as at the last day of that year.

12

The Treasury may, by order made by statutory instrument, amend the figure for the time being specified in subsections (10) and (11)(c).

13

A statutory instrument containing an order under subsection (12) is subject to annulment in pursuance of a resolution of either House of Parliament.

31

In article 3 of the Building Societies Act 1986 (Substitution of Specified Amounts and Modification of the Funding Limits Calculation) Order 2007 (S.I. 2007/860), in paragraph 3, for “the modification required by this article” substitute “ the modifications required by this article and by section 7(3)(aa) ”.

2

The amendment by this paragraph of a provision contained in subordinate legislation is without prejudice to any power to amend that provision by subordinate legislation.

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<num>3A</num>
<content>
<p>In respect of any day by reference to which the value of X falls to be calculated for the purposes of subsection (1) in relation to the society, the total amount to be disregarded under subsection (3)(aa) may not exceed 10% of the amount that would, in the absence of subsection (3)(aa), be the value of X on that day.</p>
</content>
</subsection>
</quotedStructure>
</mod>
</p>
</content>
</subparagraph>
<subparagraph eId="schedule-9-paragraph-2-4">
<num>4</num>
<content>
<p>After subsection (6) insert—</p>
<p class="BlockAmendment">
<mod>
<quotedStructure class="primary unknown main default" startQuote="" endQuote="">
<subsection eId="d4e191">
<num>6ZA</num>
<content>
<p>Where a person declares that the person is a small business, the person shall, unless the contrary is shown, be conclusively presumed for the purposes of this section to be a small business.</p>
</content>
</subsection>
</quotedStructure>
</mod>
</p>
</content>
</subparagraph>
<subparagraph eId="schedule-9-paragraph-2-5">
<num>5</num>
<content>
<p>After subsection (9) insert—</p>
<p class="BlockAmendment">
<mod>
<quotedStructure class="primary unknown main default" startQuote="" endQuote="">
<subsection eId="d4e204">
<num>10</num>
<content>
<p>
In this section “
<term refersTo="#term-small-business">small business</term>
” means any person (other than an individual acting as a sole trader) carrying on a business which had a turnover in the relevant financial year of less than £1,000,000.
</p>
</content>
</subsection>
<subsection eId="d4e213">
<num>11</num>
<intro>
<p>For the purposes of subsection (10)—</p>
</intro>
<paragraph eId="d4e219">
<num>a</num>
<content>
<p>
the “
<term refersTo="#term-relevant-financial-year">relevant financial year</term>
”, in relation to any day by reference to which the value of X falls to be calculated for the purposes of subsection (1) in relation to a building society, means the last financial year ending before that day;
</p>
</content>
</paragraph>
<paragraph eId="d4e228">
<num>b</num>
<content>
<p>
<term refersTo="#term-turnover">turnover</term>
”, in relation to a small business, means the amount derived from the provision of goods and services falling within the business's ordinary activities, after deduction of trade discounts, value added tax and any other taxes based on the amounts so derived;
</p>
</content>
</paragraph>
<paragraph eId="d4e237">
<num>c</num>
<content>
<p>in respect of any relevant financial year, the reference to £1,000,000 includes the equivalent amount in any other currency, calculated as at the last day of that year.</p>
</content>
</paragraph>
</subsection>
<subsection eId="d4e243">
<num>12</num>
<content>
<p>The Treasury may, by order made by statutory instrument, amend the figure for the time being specified in subsections (10) and (11)(c).</p>
</content>
</subsection>
<subsection eId="d4e249">
<num>13</num>
<content>
<p>A statutory instrument containing an order under subsection (12) is subject to annulment in pursuance of a resolution of either House of Parliament.</p>
</content>
</subsection>
</quotedStructure>
</mod>
</p>
</content>
</subparagraph>
</paragraph>
<paragraph eId="schedule-9-paragraph-3" period="#period2">
<num>3</num>
<subparagraph eId="schedule-9-paragraph-3-1">
<num>1</num>
<content>
<p>
In article 3 of the Building Societies Act 1986 (Substitution of Specified Amounts and Modification of the Funding Limits Calculation) Order 2007 (
<abbr class="Acronym" title="Statutory Instrument">S.I.</abbr>
2007/860), in paragraph 3, for “the modification required by this article” substitute
<mod>
<quotedText>“ the modifications required by this article and by section 7(3)(aa) ”</quotedText>
</mod>
.
</p>
</content>
</subparagraph>
<subparagraph eId="schedule-9-paragraph-3-2">
<num>2</num>
<content>
<p>The amendment by this paragraph of a provision contained in subordinate legislation is without prejudice to any power to amend that provision by subordinate legislation.</p>
</content>
</subparagraph>
</paragraph>
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</hcontainer>
</hcontainer>
</portionBody>
</portion>
</akomaNtoso>