PART VInheritance Tax

107Changes in financial institutions: interest

1

In section 234 of the 1984 Act (interest on instalments) the following shall be substituted for subsection (3)(c)—

c

any company whose business is wholly that of a market maker or is that of a discount house and (in either case) is carried on in the United Kingdom.

2

At the end of that section there shall be inserted—

4

In this section "market maker" 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 securities, stocks or shares at a price specified by him, and

b

is recognised as doing so by the Council of The Stock Exchange.

3

Subsections (1) and (2) above apply in relation to chargeable transfers made, and other events occurring, on or after the day of The Stock Exchange reforms.

4

The Board may by regulations provide that section 234(4) of the 1984 Act (as inserted by subsection (2) above) shall have effect—

a

as if the reference to The Stock Exchange in paragraph (a) were to any recognised investment exchange (within the meaning of the Financial Services Act 1986) 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) were to the investment exchange concerned.

5

The Board may by regulations amend section 234 of the 1984 Act so as to secure that companies of a description set out in the regulations fall within section 234(3)(c); and the regulations may include such incidental and consequential provisions as the Board think fit.

6

Regulations under subsection (4) or (5) above shall apply in relation to chargeable transfers made, and other events occurring, on or after such day, after the day of The Stock Exchange reforms, as is specified in the regulations.

7

The power to make regulations under subsection (4) or (5) above shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the Commons House of Parliament.

8

In this section "the day of The Stock Exchange reforms" has the same meaning as in section 106 above.