Finance Act 1998

Government borrowing U.K.

158 Treasury’s position regarding their own securities. U.K.

(1) This section applies to securities issued by or on behalf of the Treasury, here referred to as Treasury securities.

(2) Any powers which relate to Treasury securities and which are conferred on the Treasury in a capacity other than issuer may be exercised by them, and no rule of law preventing a person contracting with himself shall prevent them exercising the powers.

(3) The powers referred to in subsection (2) above include powers to acquire, hold and transfer securities and to make agreements with regard to them.

(4) If Treasury securities are acquired under powers conferred on the Treasury, until they are transferred or redeemed they shall be treated as held by the persons for the time being constituting the Treasury.

159 Treasury bills. U.K.

(1) In section 8 of the M1 Treasury Bills Act 1877 (mode of issue of Treasury bills) the following shall be substituted for paragraph (1)—

“(1) Treasury bills shall be issued by the Treasury (either directly or through such agent as the Treasury think fit).”

(2) This section shall apply in relation to issues made on or after such day as the Treasury may appoint by order made by statutory instrument.

Subordinate Legislation Made

P1 S. 159(2) power fully exercised (25.10.1999): 15.11.1999 appointed by S.I. 1999/2908, arts. 1(2), 2(1)

Marginal Citations

M1 1877 c. 2.

160 National loans. U.K.

Schedule 26 to this Act (national loans) shall have effect.

161 Non-FOTRA securities. U.K.

(1) Subject to the following provisions of this section, any gilt-edged security issued before 6th April 1998 without FOTRA conditions shall be treated in relation to times on or after that date as if—

(a) it were a security issued with the post-1996 Act conditions; and

(b) those conditions had been authorised in relation to the issue of that security by virtue of section 22 of the M2 Finance (No. 2) Act 1931.

(2) Where a gilt-edged security falls to be treated as mentioned in subsection (1) above that treatment shall have effect—

(a) for the purposes of sections 711 to 728 of the Taxes Act 1988 (accrued income scheme), in relation only to amounts which a person is treated under those sections as receiving on or after 6th April 1998;

(b) for the other purposes of the Tax Acts, in relation only to payments of interest falling due on or after that date; and

(c) for the purposes of the M3 Inheritance Tax Act 1984, in relation only to a determination of whether property is excluded property at a time falling on or after that date.

(3) No charge to tax shall be treated as arising under section 65 of the M4 Inheritance Tax Act 1984 (property becoming excluded property) by reason only of the coming into force of this section.

(4) In this section “FOTRA conditions” means any such conditions about exemption from taxation as are authorised in relation to the issue of a gilt-edged security by virtue of section 22 of the M5 Finance (No. 2) Act 1931.

(5) In this section “the post-1996 Act conditions” means the FOTRA conditions with which 7.25% Treasury Stock 2007 was first issued by virtue of section 22 of the M6 Finance (No. 2) Act 1931.

(6) In this section “gilt-edged securities” means any securities which are gilt-edged securities for the purposes of the M7 Taxation of Chargeable Gains Act 1992.

(7) This section does not apply to any 3½% War Loan 1952 Or After which was issued with a condition authorised by virtue of section 47 of the M8 Finance (No. 2) Act 1915.

Marginal Citations

M2 1931 c. 49.

M3 1984 c. 51.

M4 1984 c. 51.

M5 1931 c. 49.

M6 1931 c. 49.

M7 1992 c. 12.

M8 1915 c. 89.

162 Accounting statements relating to National Savings. U.K.

(1) Subject to subsection (2) below, in each of the following provisions (which provide for annual statements of account as respects years ending with 31st December to be prepared in relation to deposits with the National Savings Bank), that is to say—

F1 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) section 120(4) of the M9 Finance Act 1980 (investment deposits),

for “31st December" there shall be substituted “ 31st March ”.

F2 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) In section 19(2) of the M10 National Savings Bank Act 1971 (delivery of statement under section 19(1) to the Comptroller and Auditor General), for the words from “before the end of May" to “that year" there shall be substituted “ before the end of August next following the end of any period for which a statement falls to be prepared under subsection (1) above, transmit the statement for that period ”.

(4) In section 20 of that Act (adjustment of balances)—

(a) for “year ending with 31st December" there shall be substituted “ period as respects which a statement falls to be prepared under section 19(1) of this Act ”;

(b) for the words “the year", in each place where they occur, there shall be substituted “ that period ”; and

(c) for “any such year" there shall be substituted “ any such period ”.

F3 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 S. 162(1)(a) repealed (10.7.2003) by Finance Act 2003 (c. 14), Sch. 43 Pt. 5(4)

F2 S. 162(2) repealed (10.7.2003) by Finance Act 2003 (c. 14), Sch. 43 Pt. 5(4)

F3 S. 162(5) repealed (10.7.2003) by Finance Act 2003 (c. 14), Sch. 43 Pt. 5(4)

Marginal Citations

M9 1980 c. 48.

M10 1971 c. 29.