National debt

16Supplemental provisions as to national debt

(1)

Subject to subsection (2) below, the definitions of " government stock " in—

(a)

section 51 of the Finance Act 1921,

(b)

section 15 of the M1National Debt Act 1958,

shall include securities issued under this Act, other than national savings certificates, premium savings bonds, national savings stamps and national savings gift tokens, and in section 43(2) of the M2Finance Act 1956 (enactments relating to lotteries: saving for premium bonds under the M3National Loans Act 1939) the reference to the said Act of 1939 shall include a reference to this Act.

(2)

The Treasury may by order in a statutory instrument, subject to annulment in pursuance of a resolution of the House of Commons, exclude from either or both of the said definitions of " government stock " any description of securities issued under this Act.

(3)

Stock or registered bonds issued under this Act, other than premium savings bonds, shall be included in Part I of Schedule 11 to the M4Finance Act 1942 (transfer and registration of government stock).

(4)

Stock or registered bonds issued under this Act shall be subject to the provisions of the M5National Debt Act 1870 so far as is consistent with the tenor of this Act.

(5)

Section 196 of the M6Income Tax Act 1952 (interest on Government securities payable without deduction of tax) shall have effect as if securities issued under this Act were among those described in paragraphs (a) to (d) of subsection (1) of that section.

(6)

The Treasury shall from time to time pay to trustee savings banks, as consideration for the performance by them of the functions conferred on them by the M7National Debt Act 1958, such amounts as may be determined by the Treasury after consultation with the Trustee Savings Banks Association.

Payments under this subsection shall be made out of the National Loans Fund with recourse to the Consolidated Fund.

(7)

There shall be paid out to the Banks of England and Ireland, and into the Post Office Fund, such sums in respect of the management in the year ending 31st March 1968 or any subsequent financial year of any Government securities as may be agreed upon between the Treasury on the one hand and the Bank of England, the Bank of Ireland and the Postmaster General respectively on the other hand.

In this subsection " Government securities " means securities of Her Majesty's Government in the United Kingdom and securities issued under—

  • Part II of the M8Tithe Act 1936,

  • the M9Irish Land Act 1903,

  • the M10Irish Land Act 1909,

  • the M11Northern Ireland Land Act 1925.

(8)

Sums payable under subsection (7) above to the Banks of England and Ireland—

(a)

shall, so far as they relate to Government securities in respect of which registers are kept by the Bank of England and Bank of Ireland respectively, be calculated on the nominal amount, as certified by the National Debt Commissioners, of such securities outstanding at the end of the financial year ending last before the financial year for which the sums are payable, and

(b)

shall be payable before 30th June next following the end of the financial year for which the sums are payable.

(9)

Sums payable under subsection (7) above shall be met out of the National Loans Fund with recourse to the Consolidated Fund, except that—

(a)

sums payable in respect of securities issued under Part II of the M12Tithe Act 1936 shall be paid out of the Redemption Annuities Account under section 25 of that Act, and

(b)

sums payable in respect of securities issued under the said Acts of 1903, 1909 and 1925 shall be payable as part of the expenses of the National Debt Commissioners on account of Irish land purchase services under the said Act of 1903 as modified by Part III of Schedule 2 to the M13Irish Free State (Consequential Provisions) Act 1922 and section 6 of the M14Northern Ireland Land Purchase (Winding Up) Act 1935.