Section 63.
1—6.U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1
Textual Amendments
7(1)In section 21 of the M1Taxes Management Act 1970 (stock jobbers’ transactions) in subsections (1), (2) and (4) for the word “jobber” (in each place) there shall be substituted the words “market maker” and in subsection (5) for the word “jobbers” there shall be substituted the words “market makers”.
(2)In subsection (7) of section 21 the following shall be substituted for the definitions of “broker” and “jobber”—
““broker”, in relation to securities, means a member of The Stock Exchange who carries on his business in the United Kingdom and is not a market maker in securities of the kind concerned;
“market maker”, in relation to securities, means a person who—
holds himself out at all normal times in compliance with the rules of The Stock Exchange as willing to buy and sell securities of the kind concerned at a price specified by him, and
is recognised as doing so by the Council of The Stock Exchange;”.
(3)Sub-paragraphs (1) and (2) above apply in relation to transactions effected on or after the day of The Stock Exchange reforms.
(4)The Board may by regulations provide that section 21(7) (as amended by sub-paragraph (2) above) shall have effect—
(a)as if references to The Stock Exchange in the definition of “broker” and in paragraph (a) of the definition of “market maker” were to any recognised investment exchange or to any of those exchanges specified in the regulations, and
(b)as if the reference to the Council of The Stock Exchange in paragraph (b) of the definition of “market maker” were to the investment exchange concerned.
(5)Regulations under sub-paragraph (4) above shall apply in relation to transactions effected on or after such day, after the day of The Stock Exchange reforms, as is specified in the regulations.
8(1)In section 25 of the Taxes Management Act 1970 (information: chargeable gains) in subsection (4) for the word “jobber” there shall be substituted the words “market maker”.U.K.
(2)At the end of section 25 there shall be inserted—
“(10)In this section “market maker”, in relation to shares or securities, means a person who—
(a)holds himself out at all normal times in compliance with the rules of The Stock Exchange as willing to buy and sell shares or securities of the kind concerned at a price specified by him, and
(b)is recognised as doing so by the Council of The Stock Exchange.”
(3)Sub-paragraphs (1) and (2) above apply in relation to transactions on or after the day of The Stock Exchange reforms.
(4)The Board may by regulations provide that—
(a)subsections (4) and (5) of section 25 and paragraph (a) of subsection (10) (as inserted by sub-paragraph (2) above) shall have effect as if references to The Stock Exchange were to any recognised investment exchange or to any of those exchanges specified in the regulations, and
(b)paragraph (b) of subsection (10) shall have effect as if the reference to the Council of The Stock Exchange were to the investment exchange concerned.
(5)Regulations under sub-paragraph (4) above shall apply in relation to transactions effected on or after such day, after the day of The Stock Exchange reforms, as is specified in the regulations.
9(1)The Board may by regulations—
(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F2
(b)substitute for section 21(1) of the M2Taxes Management Act 1970 a provision that the Board may exercise the powers conferred by section 21 [F3in relation to such persons (whether market makers or not) and] in such circumstances as are specified in the substituted provision;
(c)make such incidental and consequential provisions (which may include the amendment of other provisions of . . . F4 section 21) as appear to the Board to be appropriate.
(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F2
(3)So far as they relate to section 21, the regulations shall apply in relation to transactions effected on or after such day, after the day of The Stock Exchange reforms, as is specified in the regulations.
Textual Amendments
F2Schs. 7, 8, 9 Pt. I paras. 1–21, Pt. II para. 23, Schs. 10–12, 17, 18 paras. 1–6, 9(1)(a)(2) repealed by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), s. 844, Sch. 31
F3Words in Sch. 18 para. 9(1)(b) inserted (with effect in relation to payments made on or after 26.2.1992) by Finance Act 1991 (c. 31, SIF 63:1), s. 58(2), Sch. 13 para.2; S.I. 1992/173, art.2.
F4Words repealed by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), s. 844, Sch. 31
Marginal Citations
10(1)In this Schedule “the day of The Stock Exchange reforms” means the day on which the rule of The Stock Exchange that prohibits a person from carrying on business as both a broker and a jobber is abolished.U.K.
(2)In this Schedule “recognised investment exchange” means a recognised investment exchange within the meaning of the Financial Services Act 1986.
(3)Any power to make regulations under this Schedule shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.