Textual Amendments
F1Ss. 412A, 412B and preceding cross-heading inserted (1.4.2007 for certain purposes and 1.11.2007 otherwise) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2007 (S.I. 2007/126), regs. 1(2), 3(5), Sch. 5 para. 18
F2(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)After section 76 of the 1988 Act insert—
(1)In computing the amount of the profits to be charged under Case I of Schedule D arising from a trade carried on by an authorised person (other than an investment company)—
(a)to the extent that it would not be deductible apart from this section, any sum expended by the authorised person in paying a levy may be deducted as an allowable expense;
(b)any payment which is made to the authorised person as a result of a repayment provision is to be treated as a trading receipt.
(2)“Levy” has the meaning given in section 76(7A).
(3)“Repayment provision” means any provision made by virtue of—
(a)section 136(7) of the Financial Services and Markets Act 2000 (“the Act of 2000”);
(b)section 214(1)(e) of the Act of 2000.
(4)“Authorised person” has the same meaning as in the Act of 2000.
(1)For the purposes of section 75 any sums paid by an investment company—
(a)by way of a levy, or
(b)as a result of an award of costs under costs rules,
shall be treated as part of its expenses of management.
(2)If a payment is made to an investment company as a result of a repayment provision, the company shall be charged to tax under Case VI of Schedule D on the amount of that payment.
(3)“Levy” has the meaning given in section 76(7A).
(4)“Costs rules” means—
(a)rules made under section 230 of the Financial Services and Markets Act 2000;
(b)provision relating to costs contained in the standard terms fixed under paragraph 18 of Schedule 17 to that Act.
(5)“Repayment provision” has the meaning given in section 76A(3).”
Textual Amendments
F2S. 411(1) repealed (1.12.2001) by S.I. 2001/3629, arts. 1(2)(a), 109, Sch.