Finance Act 1994

177 Interpretation of Chapter II. U.K.

(1) In this Chapter—

• “appointed day” has the meaning given by section 147(4) above;

• “bank” means any of the following—

  (a)

  the Bank of England;

  (b)

  any institution authorised under the M1 Banking Act 1987; and

  (c)

  a European authorised institution which has lawfully established a branch in the United Kingdom for the purpose of accepting deposits;

• “commencement day” has the meaning given by section 147(4) above [F1 —

(a) for the purposes of this Chapter as it has effect in relation to any debt contract or option, means (subject to paragraph 25 of Schedule 15 to the Finance Act 1996) 1st April 1996; and

(b) for all other purposes] has the meaning given by section 147(4) above;

• “currency contract” and “currency option” shall be construed in accordance with section 150 above;

• [F2 “debt contract” and “debt option” shall be construed in accordance with section 150A above;]

• “deposit” has the same meaning as in the M2 Banking Act 1987;

• “European authorised institution” has the same meaning as in the M3 Banking Coordination (Second Council Directive) Regulations 1992;

• “financial trader” means any of the following—

  (a)

  an authorised person under Chapter III of Part I of the M4 Financial Services Act 1986;

  (b)

  an exempted person under section 43 of that Act;

  (c)

  a European authorised institution which has lawfully established a branch in the United Kingdom for the purpose of carrying on investment business; and

  (d)

  any person not falling within paragraphs (a) to (c) above who is approved by the Board for the purposes of this paragraph;

• “inspector” includes any officer of the Board;

• “insurance company” means a company [F3 which carries on any insurance business (within the meaning of the M5 Insurance Companies Act 1982);]

• “interest rate contract” and “interest rate option” shall be construed in accordance with section 149 above;

• “investment business” has the same meaning as in the M6 Financial Services Act 1986;

• “mutual trading company” means a company carrying on any business of mutual trading or mutual insurance or other mutual business;

• “qualifying company” has the meaning given by section 154 above;

• “qualifying contract” has the meaning given by section 147(1) above;

• “qualifying payment” shall be construed in accordance with section 153 above.

(2) For the purposes of this Chapter—

(a) a company becomes entitled to rights or subject to duties under an interest rate contract or option, [F4 a currency contract or option or a debt contract or option] when it becomes party to the contract or option; and

(b) a company holds such a contract or option at a particular time if it is then entitled to rights or subject to duties under it;

and it is immaterial for the purposes of paragraph (b) above when the rights or duties fall to be exercised or performed.

(3) Any provision of this Chapter other than section 167 above which requires any amount (the relevant amount) to be deducted from amount A or, as the case may require, added to amount B shall be construed as requiring the following deductions or additions to be made—

(a) where amount A is not less than the relevant amount, a deduction from amount A of an amount equal to the relevant amount;

(b) where amount A is less than the relevant amount but is more than nil—

(i) a deduction from amount A of an amount equal to so much of the relevant amount as may be necessary to reduce amount A to nil, and

(ii) an addition to amount B of an amount equal to the remainder of the relevant amount;

(c) where amount A is nil, an addition to amount B of an amount equal to the relevant amount.

(4) Subsection (3) above shall be read as applying equally to any such provision which requires any amount to be deducted from amount B or, as the case may be, added to amount A, and for that purpose shall have effect with such modifications as may be requisite.

(5) In this Chapter expressions which are not defined or otherwise explained but are used in Chapter II of Part II of the M7 Finance Act 1993 (exchange gains and losses) have the same meanings as in that Chapter.

(6) The Treasury may by order amend any of sections 149 to 153 above; and any such order may—

(a) make corresponding amendments to section 126 of the M8 Finance Act 1993;

(b) make consequential amendments to such of the provisions of this Chapter or Chapter II of Part II of that Act as relate to currency contracts; and

(c) contain such other consequential provisions, and such supplementary, incidental or transitional provisions, as appear to the Treasury to be necessary or expedient.

Textual Amendments

F1 S. 177(1): Words in the definition of “commencement day” inserted (29.4.1996 with effect as mentioned in s. 105(2) of the amending Act) by 1996 c. 8, s. 104, Sch. 14 para. 78(1)(a) (with savings etc. in Pt. IV Chapter II (ss. 80-105))

F2 S. 177(1): Definitions of “debt contract” and “debt option” inserted (29.4.1996 with effect as mentioned in s. 105(2) of the amending Act) by 1996 c. 8, s. 104, Sch. 14 para. 78(1)(b) (with savings etc. in Pt. IV Chapter II (ss. 80-105))

F3 S. 177(1): Words in the definition of “insurance company” substituted (1.5.1995 with effect as mentioned in s. 52(5) of the amending Act) by 1995 c. 4, s. 52(3)

F4 Words in s. 177(2)(a) substituted (29.4.1996 with effect as mentioned in s. 105(2) of the amending Act) by 1996 c. 8, s. 104, Sch. 14 para. 78(2) (with savings etc. in Pt. IV Chapter II (ss. 80-105))

Marginal Citations

M1 1987 c. 22.

M2 1987 c. 22.

M3 S.I. 1992/3218.

M4 1986 c. 60.

M5 1982 c. 50

M6 1986 c. 60.

M7 1993 c.34.

M8 1993 c.34.