2005 No. 2562

INCOME TAX

The Personal Equity Plan (Amendment) Regulations 2005

Made

Laid before the House of Commons

Coming into force

The Treasury, in exercise of the powers conferred upon them by sections 694(1) and (5), 695(1) and (3), 696 and 701(1) of the Income Tax (Trading and Other Income) Act 20051 and section 151 of the Taxation of Chargeable Gains Act 19922, make the following Regulations:

Citation and commencement1

These Regulations may be cited as the Personal Equity Plan (Amendment) Regulations 2005 and shall come into force on 6th October 2005.

Amendment of the Personal Equity Plan Regulations 1989

2

The Personal Equity Plan Regulations 19893 are amended as follows.

3

In regulation 2(1)(a) for the definition of “the Board” substitute—

  • “the Board” means the Commissioners for Her Majesty’s Revenue and Customs;

4

In regulation 64—

a

in paragraph (2)(a) for the words from “, issued” to the end substitute—

i

issued by a company wherever incorporated,

ii

subject to paragraph (3), officially listed on a recognised stock exchange, and

iii

in circumstances where the shares in question satisfy the condition specified in paragraph (13), or were held under the component on 6th October 2005;

b

for paragraph (2)(b)(ii) substitute—

ii

where the securities in question satisfy—

a

at least one of the conditions specified in paragraph (5),

b

the condition specified in paragraph (6), and

c

the condition specified in paragraph (13), or the condition that they were held under the component on 6th October 2005, and

c

in paragraph (12) after “sub-paragraphs” insert “(a), (b),”.

5

In regulation 24A(3)(a)5 after paragraph (ii) insert—

iia

government securities falling within regulation 6(2)(c), (d) or (e);

Joan RyanVernon CoakerTwo of the Lords Commissioners of Her Majesty’s Treasury

(This note is not part of the Regulations)

These Regulations amend the Personal Equity Plan Regulations 1989 (S.I.1989/469). The effects of the Regulations are (1) to apply the “cash like test” in regulation 6(13) to shares and securities and (2) to make a small change to the annual information returns required from account managers.

Regulation 1 provides for citation and commencement and regulation 2 for amendment of the 1989 Regulations. Regulation 3 amends the definition of “the Board” to refer to the Commissioners for Her Majesty’s Revenue and Customs.

Regulation 4 applies the “cash like test” to shares and securities.

Regulation 7 makes a change to the annual information return to require the reporting of U.K. or foreign government securities.

These Regulations impose no new costs (exceeding the minimum threshold) on business.