Amendments to the principal Regulations
4. In regulation 5—
(a)in paragraph (1) for the words “at the rate prescribed” there shall be substituted “at the appropriate rate or rates prescribed”;
(b)for paragraph (2) there shall be substituted the following paragraph—
“(2) The rates prescribed by this paragraph are—
(a)as respects an accounting period ending before the financial year 1996, the rate applicable in accordance with section 88(1) of the Finance Act 1989(1);
(b)as respects an accounting period commencing in or after the financial year 1996, the rate applicable in accordance with section 88A(1) of the Finance Act 1989(2);
(c)as respects an accounting period part of which falls in the financial year 1995 (“the 1995 part”) and part in the financial year 1996 (“the 1996 part”), the rate applicable in accordance with section 88(1) of the Finance Act 1989 in relation to the proportion of the amount of the investment return attributable to the 1995 part, and the rate applicable in accordance with section 88A(1) of that Act in relation to the proportion of the amount of the investment return attributable to the 1996 part.”
Section 88(1) was amended by section 45(1) of the Finance Act 1990 and paragraph 26(1) of Schedule 6 to the Finance Act 1996 (c. 8).
Section 88A was inserted by paragraph 26(2) of Schedule 6 to the Finance Act 1996.