3. For the purpose of section 118(6)(b) of the Act the Secretary of State hereby prescribes trading schemes of the following description, that is to say—
(a)any trading scheme which is a single tier trading scheme under which a participant introducing another participant to the scheme does not receive any payment or benefit, or can only receive a single benefit or payment, in respect of the introduction of that participant, such payment or benefit not exceeding £50 and can receive no other benefit or payment in respect of or flowing directly or indirectly from the membership or activities of that participant in that or any other trading scheme, unless such other benefit or payment results from—
(i)a sharing of expenses of the operation of the trading scheme;
(i)a share in the annual profit of the trading scheme; or
(iii)the sale of the participant’s business, being a business in respect of which a registration under the Value Added Taxes Act 1994 was in force at the date of sale.
(b)any trading scheme the promoter or all of the promoters of which and all of the participants in which are registered for Value Added Tax; or
(c)any trading scheme which is a chain letter provided there is no requirement on the participant to send monies or other benefits
(i)to a central address or the promoter of the trading scheme for onward distribution; or
(ii)to any person or organisation other than or additional to the person whose name and address is to be deleted from the list when the participant sends the letter to others; or
(iii)to an organisation or person for onward transmission to a participant (whether or not that participant is identified on the list), and
where the promoter does not benefit from the provision of any other service or facilities offered or provided either by him or any other person or organisation to participants.