In section 732 of the Taxes Act 1988, after subsection (2) (exemption for market makers) there shall be inserted—

“(2A)

Subsection (1) above shall not apply in prescribed circumstances if—

(a)

the first buyer is—

(i)

a prescribed recognised clearing house, or

(ii)

a member, of a prescribed class or description, of a prescribed recognised investment exchange, and

(b)

the subsequent sale is carried out by the first buyer after a prescribed date and in the ordinary course of his business.”

At the end of that section there shall be added—

“(7)

For the purposes of subsection (2A) above—

“prescribed means prescribed in regulations made by the Treasury;

“recognised clearing house means a recognised clearing house within the meaning of the Financial Services Act 1986;

“recognised investment exchange means a recognised investment exchange within the meaning of that Act.”