Finance Act 1968

SCHEDULE 18 E+W+S+N.I. Premium Savings Bonds: New Terms

1 Premium Savings Bonds are a Government Security and are eligible for inclusion in draws for cash prizes. These prizes are free from United Kingdom Income Tax, Surtax and Capital Gains Tax. E+W+S+N.I.

2 Premium Saving Bonds, (Series B) (hereinafter called Bonds) will be issued in units of £1 by the Treasury and will be subject to regulations made from time to time by the Treasury under section 12 of the M1 National Debt Act 1958, or having effect by virtue of that Act. The principal of the Bonds and the prizes allotted will be a charge on the National Loans Fund with recourse to the Consolidated Fund. E+W+S+N.I.

Annotations:

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Marginal Citations

M1 1958 c. 6. (7 & 8 Eliz. 2).

3 The purchaser will be required to fill in an application form giving his full name and address, the amount of Bonds which he wishes to purchase and his usual signature. E+W+S+N.I.

4 Bonds are not transferable either during the lifetime or on the death of the registered holder. No responsibility can be accepted in respect of their use as security for a loan. E+W+S+N.I.

5 There will be a monthly prize fund which will be determined by calculating one month’s interest on each bond eligible for the draws in that month. The rate of interest will be 45/8% per annum or such other rate as may be prescribed under the provisions of paragraph 15 below. E+W+S+N.I.

6 A draw will be held each week to allot from the prize fund one prize of £25,000, and a draw will be held each month to allot the amount remaining after the amounts for the prizes for the weekly draws in that month have been set aside. E+W+S+N.I.

7 A Bond will be eligible for inclusion in the first draw held after the expiration of the three clear calendar months following the month in which it is purchased, provided that it has not been repaid before the expiration of those three months. After a Bond has qualified for its first draw it will be included in each succeeding draw, unless it has been repaid before the first day of the month in which the draw is held or (subject to the provisions of paragraph 15 below) the registered holder has died before the first day of a period of twelve consecutive calendar months preceding the month in which the draw is held. E+W+S+N.I.

8 Each £1 unit Bond will have one chance in each draw for which it is eligible. Each £1 unit Bond may win not more than one prize in each draw for which it is eligible and in draws producing more that one prize will be allotted the highest prize for which it is drawn. E+W+S+N.I.

9 Notwithstanding the provisions of paragraph 7 above any Bond purchased in contravention of any regulation limiting the number of unit Bonds which may held by any person shall not be eligible for inclusion in any draw until the holding has been reduced to not more than the maximum number permitted by such regulation. E+W+S+N.I.

10 The monthly prize fund will be allocated in prizes of the following numbers and amounts (or such other numbers and amounts as may be prescribed under the provisions of paragraph 15 below): E+W+S+N.I.

(a) For the weekly draws there will be set aside an amount to be allocated as single prizes of £25,000 each week, the number of such prizes to be equal to the number of Saturdays in the month.

(b) For the monthly draw the remaining prize fund will then be allocated as follows:—

(i) each complete £100,000 will be divided into:

• 1 prize of £5,000

• 10 prizes of £1,000

• 10 prizes of £500

• 20 prizes of £250

• 30 prizes of £100

• 150 prizes of £50

• 2,580 prizes of £25

(ii) of the remainder, each complete £10,000 will be divided into:

• 1 prize of £1,000

• 1 prize of £500

• 2 prizes of £250

• 3 prizes of £100

• 20 prizes of £50

• 268 prizes of £25

(iii) any amount of less than £10,000 will be allocated in prizes of £25, any residual sum of less than £25 being added to the prize fund in the following month.

11 The serial numbers of Bonds which are allotted prizes will be published in the London Gazette, and the registered holders will be notified by post at their last address as recorded at the Bonds and Stock Office. E+W+S+N.I.

12 All matters relating to the method and conduct of the draw and allotment of prizes shall be at the sole discretion of the Postmaster General, whose decision as to which Bonds have drawn prizes shall be final. E+W+S+N.I.

13 The purchase price of a Bond is repayable in full on application to the Bonds and Stock Office. E+W+S+N.I.

14 For the purposes of this Prospectus a Bond shall be deemed to be repaid on the day on which a warrant for the amount repayable is posted to the person entitled to it. E+W+S+N.I.

15 The Treasury reserve the right by giving not less than three months notice in the London, Edinburgh and Belfast Gazettes:— E+W+S+N.I.

(a) to vary the rate of interest specified in paragraph 5 above for determining the amount of the prize fund;

(b) to vary the scale of prizes set out in paragraphs 6 and 10 above;

(c) to vary the provisions of paragraph 7 above insofar as they relate to the eligibility of a Bond for inclusion in a draw after the death of the registered holder;

(d) to declare any Bonds purchased on or before a date specified in the Notice to be ineligible for further draws.

16 If the Treasury give notice under paragraph 15 above to vary the terms of this Prospectus for any Bonds sold on those terms, its terms shall be deemed to be varied accordingly, as from the date of publication of the Notice, for any application to buy a Bond or Bonds on or after that date. E+W+S+N.I.