Finance Act 1986

6 (1) Section 477 of the Taxes Act shall also be amended as provided by this paragraph.

(2) In subsection (3) for the word "jobber" (in the first place where it occurs) there shall be substituted the words "market maker" and for the word "jobber" (in the second place where it occurs) there shall be substituted the words "market maker in securities of the kind concerned".

(3) In subsection (6) 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, at the time the contract for the sale of the securities is made, a market maker in securities of the kind concerned,

• "market maker", in relation to securities of a particular kind, 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 that kind at a price specified by him, and

  (b)

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

(4) Sub-paragraphs (2) and (3) above apply where the contract for the sale of securities is made on or after the day of The Stock Exchange reforms.

(5) The Board may by regulations provide that section 477(6) (as amended by sub-paragraph (3) 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.

(6) Regulations under sub-paragraph (5) above shall apply where the contract for the sale of securities is made on or after such day, after the day of The Stock Exchange reforms, as is specified in the regulations.