The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001

Tax treatment of levies and repayments

16.—(1) Omit section 76(7) and (7A) (expenses of management: insurance companies)(1).

(2) Amend section 76A (levies and repayments under the Financial Services and Markets Act 2000)(2) in accordance with paragraphs (3) to (5) below.

(3) For subsection (2) substitute—

“(2) “Levy” means—

(a) a payment required under rules made under section 136(2) of the Financial Services and Markets Act 2000 (“the Act of 2000”);

(b) a levy imposed under the Financial Services Compensation Scheme;

(c) a payment required under rules made under section 234 of the Act of 2000;

(d) a payment required under scheme rules in accordance with paragraph 15(1) of Schedule 17 to the Act of 2000;

(e) a payment required in accordance with the standard terms fixed under paragraph 18 of Schedule 17 to the Act of 2000 other than an award which is not an award of costs under cost rules.”.

(4) For subsection (3) substitute—

“(3) “Repayment provision” means—

(a) any provision made by virtue of section 136(7) or 214(1)(e) of the Act of 2000;

(b) any provision by scheme rules for fees to be refunded in specified circumstances.”.

(5) After subsection (4) add—

“(5) “Scheme rules” means the rules referred to in paragraph 14(1) of Schedule 17 to the Act of 2000.

(6) “Costs rules” means—

(a) rules made under section 230 of the Act of 2000;

(b) provision relating to costs contained in the standard terms fixed under paragraph 18 of Schedule 17 to the Act of 2000.”.

(6) Amend section 76B (levies and repayments under the Financial Services and Markets Act 2000: investment companies) in accordance with paragraphs (7) and (8) below.

(7) In subsection (3) for “76(7A)” substitute “76A(2)”.

(8) For subsection (4) substitute—

“(4) “Costs rules” has the meaning given in section 76A(6).”.

(1)

Section 76(7) and (7A) was substituted by section 411(1) of the Financial Services and Markets Act 2000.

(2)

Section 76A was inserted, together with section 76B, by section 411(2) of the Financial Services and Markets Act 2000.