Finance Act 1998

The European single currency U.K.

163 Adoption of single currency by other member States. U.K.

(1) The Treasury may, to such extent as appears to them appropriate in connection with any of the matters falling within subsection (2) below, by regulations modify the application and effect as respects—

(a) transactions in a currency other than sterling,

(b) instruments denominated in such a currency, and

(c) the bringing into account of amounts expressed in, or by reference to, such a currency,

of any enactment or subordinate legislation relating to any matter under the care and management of the Commissioners of Inland Revenue.

(2) The matters falling within this subsection are—

(a) the adoption or proposed adoption by other member States of the single currency; and

(b) any transitional measures or other arrangements applying or likely to apply in relation to the adoption of the single currency by other member States.

(3) Without prejudice to the generality of subsection (1) above, the power conferred by that subsection includes power by regulations to provide—

(a) for liabilities to pay amounts to the Commissioners of Inland Revenue under any enactment or subordinate legislation relating to taxation to be capable of being discharged, in accordance with the regulations, by payments in the single currency;

(b) for elections made for the purposes of section 93(1)(b) or 94(2)(b) of the M1 Finance Act 1993 (computation of a company’s profits in a foreign currency) to have effect as modified in accordance with the regulations; and

(c) for such persons as may be described in the regulations to be treated as having made elections for any of those purposes in such terms as may be provided for in the regulations.

(4) The power to make regulations under this section includes—

(a) power to impose charges to taxation;

(b) power to amend or repeal any enactment; and

(c) power to make such incidental, supplemental, consequential and transitional provision as appears to the Treasury to be appropriate.

(5) The power to make regulations under this section shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.

(6) In this section—

• “enactment” includes any enactment contained in this Act (other than this section) and any enactment passed after this Act;

• “other member State” means a member State other than the United Kingdom;

• “subordinate legislation” has the same meaning as in the M2 Interpretation Act 1978.

(7) References in this section to the adoption of the single currency are references to the adoption of the single currency in accordance with the Treaty establishing the European Community, and the reference in subsection (3)(a) above to that currency shall be construed accordingly.

Marginal Citations

M1 1993 c. 34.

M2 1978 c. 30.