Income and Corporation Taxes Act 1988

333 Personal equity plans. U.K.

M1 (1) The Treasury may make regulations providing that an individual who invests under a plan shall be entitled to relief from income tax in respect of the investments.

[F1 (1A) The plans for which provision may be made by the regulations include, in particular, a plan in the form of an account the subscriptions to which are to be invested in one or more of the ways authorised by the regulations; and, accordingly, references in this section, or in any other enactment, to a plan manager include references to the manager of such an account.]

(2) The regulations shall set out the conditions subject to which plans are to operate and the extent to which investors are to be entitled to relief from tax.

(3) In particular, the regulations may—

(a) specify the description of individuals who may invest and the kind of investments they may make;

(b) specify maximum investment limits F2 . . . ;

(c) provide that investments are to be held by persons (“plan managers”) on behalf of investors;

(d) specify how relief from tax is to be claimed by, and granted to, investors or plan managers on their behalf;

(e) provide that plans and plan managers must be such as are approved by the Board;

(f) specify the circumstances in which approval may be granted and withdrawn.

[F3 (g) provide for plans to be treated as being of different kinds, according to criteria set out in the regulations;

(h) provide that the Board may register a plan as being of a particular kind;

(i) make different provision as to different kinds of plan;

(j) provide for investment by an individual under more than one plan in the same year of assessment.]

(4) The regulations may include provision—

(a) that in prescribed circumstances—

(i) an investor under a plan shall cease to be, and be treated as not having been, entitled to relief from tax in respect of the investments; and

(ii) he or the plan manager concerned (depending on the terms of the regulations) shall account to the Board for tax from which relief has already been given on the basis that the investor was so entitled;

(b) that an investor under a plan or the plan manager concerned (depending on the terms of the regulations) shall account to the Board[F4 either—

(i)] for tax from which relief has been given in circumstances such that the investor was not entitled to it; [F5 or

(ii) for an amount determined in accordance with the regulations to be the amount which is to be taken to represent such tax;]

(c) adapting, or modifying the effect of, any enactment relating to income tax in order to—

(i) secure that investors under plans are entitled to relief from tax in respect of investments;

(ii) secure that investors under plans cease to be, and are treated as not having been, so entitled;

(iii) secure that investors under plans or plan managers account for tax [F6 and other amounts] as mentioned in paragraph (a) or (b) above;

[F7 (ca) adapting or modifying the provisions of Chapter II of Part XIII in relation to cases where—

(i) an investor ceases to be, and is treated as not having been, entitled to relief from tax in respect of investments; or

(ii) an investor who was not entitled to relief has been given relief on the basis that he was;

(cb) securing that plan managers (as well as investors) are liable to account for amounts becoming due from investors as a consequence of any regulations made by virtue of paragraph (ca) above;

(cc) that an investor under a plan or a plan manager is, in prescribed cases where relief has been given to which there was no entitlement, to be liable to a penalty of a prescribed amount, instead of to any obligation to account as mentioned in paragraph (b) or (cb) above;

(cd) that liabilities equivalent to any of those which, by virtue of any of the preceding paragraphs of this subsection, may be imposed in cases where relief has been given to which there was no entitlement are to arise (in place of the liabilities to tax otherwise arising) in other cases where, in relation to any plan—

(i) a prescribed contravention of, or failure to comply with, the regulations, or

(ii) the existence of such other circumstances as may be prescribed,

would have the effect (subject to the provision made by virtue of this paragraph) of excluding or limiting an entitlement to relief;]

(d) that a person who is, or has at any time been, either an investor under a plan or a plan manager—

(i) shall comply with any notice which is served on him by the Board and which requires him within a prescribed period to make available for the Board’s inspection documents (of a prescribed kind) relating to a plan or to investments which are or have been held under it;

(ii) shall, within a prescribed period of being required to do so by the Board, furnish to the Board information (of a prescribed kind) about a plan or about investments which are or have been held under it;

(e) generally for the purpose of bringing plans into existence, and generally for the purpose of the administration of plans and the administration of income tax and corporation tax in relation to them.

(5) In this section “prescribed” means prescribed by the regulations.

Textual Amendments

F1 S. 333(1A) inserted (31.7.1998) by Finance Act 1998 (c. 36), s. 75(1)

F2 Words in s. 333(3)(b) repealed (31.7.1998) by Finance Act 1998 (c. 36), s. 75(2), Sch. 27 Pt. 3(15)

F3 S. 333(3)(g)-(j) inserted by Finance Act 1991 (c. 31, SIF 63:1), s.70

F4 Words in s. 333(4)(b) inserted (31.7.1998) by Finance Act 1998 (c. 36), s. 75(3)(a)

F5 S. 333(4)(b)(ii) and preceding word inserted (31.7.1998) by Finance Act 1998 (c. 36), s. 75(3)(b)

F6 Words in s. 333(4)(c)(iii) inserted (31.7.1998) by Finance Act 1998 (c. 36), s. 75(4)

F7 S. 333(4)(ca)-(cd) inserted (31.7.1998) by Finance Act 1998 (c. 36), s. 75(5)

Modifications etc. (not altering text)

C1 S. 333 modified (31.7.1998) by Finance Act 1998 (c. 36), s. 123(7)

C2 S. 333(2)-(5) applied (with modifications) (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 151(2), 289 (with ss. 60, 101(1), 171, 201(3)).

C3 For regulations see Part III Vol.5.

Marginal Citations

M1 Source-1986 Sch.8