Finance Act 1986

7 (1) In section 21 of the [1970 c. 9.] Taxes Management Act 1970 (stock jobbers' transactions) in subsections (1), (2) and (4) for the word "jobber" (in each place) there shall be substituted the words "market maker" and in subsection (5) for the word "jobbers" there shall be substituted the words "market makers".

(2) In subsection (7) of section 21 the following shall be substituted for the definitions of "broker" and "jobber"—

• “"broker", in relation to securities, means a member of The Stock Exchange who carries on his business in the United Kingdom and is not a market maker in securities of the kind concerned;

• "market maker", in relation to securities, means a person who—

  (a)

  holds himself out at all normal times in compliance with the rules of The Stock Exchange as willing to buy and sell securities of the kind concerned at a price specified by him, and

  (b)

  is recognised as doing so by the Council of The Stock Exchange;”.

(3) Sub-paragraphs (1) and (2) above apply in relation to transactions effected on or after the day of The Stock Exchange reforms.

(4) The Board may by regulations provide that section 21(7) (as amended by sub-paragraph (2) above) shall have effect—

(a) as if references to The Stock Exchange in the definition of "broker" and in paragraph (a) of the definition of "market maker" were to any recognised investment exchange or to any of those exchanges specified in the regulations, and

(b) as if the reference to the Council of The Stock Exchange in paragraph (b) of the definition of "market maker" were to the investment exchange concerned.

(5) Regulations under sub-paragraph (4) above shall apply in relation to transactions effected on or after such day, after the day of The Stock Exchange reforms, as is specified in the regulations.