1996 No. 844

INCOME TAX

The Tax-exempt Special Savings Account (Amendment) Regulations 1996

Made

Laid before the House of Commons

Coming into force

The Commissioners of Inland Revenue, in exercise of the powers conferred on them by section 326C(1) of the Income and Corporation Taxes Act 19881, hereby make the following Regulations:

Citation, commencement and effect1

1

These Regulations may be cited as the Tax-exempt Special Savings Account (Amendment) Regulations 1996 and shall come into force on 6th April 1996.

2

Regulation 3 has effect as respects transfers of accounts on or after 6th April 1996.

Interpretation2

In regulations 3 and 4 “the principal Regulations” means the Tax-exempt Special Savings Account Regulations 19902 and “regulation” means a regulation of those Regulations.

Amendments to the principal Regulations

3

In regulation 73—

a

in paragraph (4)(a) for the words “basic rate when it was paid or credited” there shall be substituted the words “applicable rate”;

b

after paragraph (4) there shall be inserted—

4A

In paragraph (4)(a) “the applicable rate” means—

a

in the case of an amount of interest, dividend or bonus paid or credited before 6th April 1996, the basic rate for the year of assessment in which the amount was paid or credited; and

b

in any other case, the lower rate for the year of assessment in which it was paid or credited.

4

In regulation 114 before paragraph (f) there shall be inserted the word “; or”.

A. M. W. BattishillS. C. T. MathesonTwo of the Commissioners of Inland Revenue

(This note is not part of the Regulations)

These Regulations, which come into force on 6th April 1996, further amend the Tax-exempt Special Savings Account Regulations 1990 (S.I.1990/2361; amended by S.I.1995/1929 and 3239) (“the principal Regulations”).

Regulation 1 provides for citation, commencement and effect.

Regulation 2 contains definitions.

Regulation 3 substitutes a reference to income tax at the applicable rate for the reference to income tax at the basic rate in regulation 7(4)(a) of the principal Regulations and provides that, in the case of an amount of interest, dividend or bonus paid or credited before 6th April 1996, the applicable rate is the basic rate for the year of assessment in which the amount was paid or credited and in any other case is the lower rate for the year of assessment in question.

Regulation 4 corrects a drafting error in regulation 11 of the principal Regulations as amended by the Tax-exempt Special Savings Account (Relevant European Institutions) Regulations 1995 (S.I.1995/3239).