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Finance Act 1981

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This is the original version (as it was originally enacted).

3(1)Without prejudice to paragraph 2 above but subject to sub-paragraph (2) below, the Treasury may give directions under this paragraph to any person resident in the United Kingdom who holds deposits (in this paragraph referred to as " non-resident deposits ") which are denominated in sterling and were accepted by him from a person resident outside the scheduled territories.

(2)No directions shall be given under this paragraph to any person other than a recognised bank or licensed institution within the meaning of the Banking Act 1979 unless he is a prescribed person or belongs to a prescribed class.

(3)The directions given under this paragraph to any person may require him—

(a)to deposit with the Bank of England, at such time or times and in such manner as may be specified in the directions, a sum or sums in sterling of such amount or amounts as may be determined in accordance with the directions ; and

(b)either so to deposit the sum or sums free of interest or to pay to the Bank in respect thereof a charge or charges at such rate, not exceeding the prescribed rate, as: may be so specified.

(4)The amount of the sum or sums which directions under this paragraph require a person to deposit shall be determined by reference to increases in the level of the non-resident deposits held by that person; and the directions shall provide for repayments to be made to him by the Bank by reference to reductions in that level.

(5)The method of determining whether there is any, and if so what, increase or reduction in the level of non-resident deposits held by a person shall be such as may be specified in the directions given to him but the directions shall not without his consent be so framed as to take into account any increase over a level determined by reference to any date which is more than forty-two days before the coming into force of this Schedule.

(6)Different methods may be specified under sub-paragraph (5) above in relation to different persons; and the method specified under that sub-paragraph in relation to any person—

(a)may make different provision in relation to different deposits,

including provision for leaving particular deposits out of account;

(b)may provide for disregarding any increase in whole or in part in cases where it appears to the Bank of England that it is reasonable to do so.

(7)Any charges which directions under sub-paragraph (3)(b) above require a person to pay to the Bank of England may, if the directions so provide, be deducted by the Bank from the sum for the time being held by it pursuant to the directions, and the directions may require any such deduction to be made good by that person by depositing further sums under sub-paragraph (3)(a) above.

(8)Directions given to any person under this paragraph may require him to make such returns or give such information to the Bank of England as may be required for establishing whether any, and if so what, sums are to be deposited by or repaid to him under the directions.

(9)Where directions given under this paragraph to any person are revoked any sum then held by the Bank of England pursuant to the directions shall be repaid to him.

(10)In this paragraph " deposits ", where the reference is to nonresident deposits, means any deposit as defined in section 1 of the Banking Act 1979 except that it includes—

(a)any sum excluded from that definition by subsection (5) of that section; and

(b)any sum which is paid by one branch of a business to an other and which would be a deposit if the branches were separate persons ; and in paragraph (b) above references to a branch of a business include references to its head office.

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