Supplementary
Section 9: Supplementary provision about compensation schemes etc
34.Subsection (1) provides that an order under section 5, 7 or 8(6) (provisions relating to compensation or consideration) may, in particular, make provision for:
the manner in which compensation is to be assessed;
the assessment to be made by an independent valuer appointed by the Treasury;
the procedure for the assessment of compensation;
enabling persons to apply to a tribunal to review the independent valuer’s compensation decisions (which may be the Financial Services and Markets Tribunal or any other tribunal appointed by the Treasury);
the remuneration and expenses of the valuer or of a tribunal appointed by the Treasury .
35.This ensures that an order under those sections will be able to deal with all aspects of the compensation and valuation procedure.
36.Subsection (2) provides that the order may require the valuer to value compensation on the basis of one or more of the following assumptions: that the deposit-taker is unable to continue as a going concern; that it is in administration; that it is being wound up.
37.The order may enable the tribunal, where appropriate, to send a matter back to the independent valuer for reconsideration, but it may not permit the tribunal to substitute its own decision for that of the valuer (subsection (6)).
Section 10: Tax consequences
38.Subsection (1) gives the Treasury power to make regulations varying the way in which relevant taxes apply in consequence of orders under sections 3, 4, 6 and 8 (orders transferring securities, property, rights or liabilities or extinguishing rights).
39.Subsection (2) sets out the type of provision that may be made by the regulations.
40.Subsection (3) defines certain terms used in the section. In particular it defines a “relevant tax” as corporation tax, income tax, capital gains tax, stamp duty, stamp duty reserve tax and stamp duty land tax.
41.The purpose of this section is give the Treasury the flexibility to minimise or otherwise deal with the tax consequences of transfers made under such orders.