[New search]
[Help]
STATUTORY INSTRUMENTS
2005 No. 3348
INCOME TAX
The Personal Equity Plan (Amendment No. 2) Regulations 2005
| |
Made |
6th December 2005 | |
| |
Laid before the House of Commons |
6th December 2005 | |
| |
Coming into force |
27th December 2005 | |
The Treasury, in exercise of the powers conferred upon them by sections 694(1), (3) and (5), 695(1) and (3), 696 and 701(1) of the Income Tax (Trading and Other Income) Act 2005[1] and section 151 of the Taxation of Chargeable Gains Act 1992[2], make the following Regulations:
Citation and commencement
1.
These Regulations may be cited as the Personal Equity Plan (Amendment No. 2) Regulations 2005 and shall come into force on 27th December 2005.
Amendment of the Personal Equity Plan Regulations 1989
2.
The Personal Equity Plan Regulations 1989[3] are amended as follows.
3.
In regulation 2(1)(b)—
(a) in the definition of "the second condition", in paragraph (i), after "section" insert "264,";
(b) insert the following definitions at the appropriate places—
"
"non-UCITS retail scheme"—
In this definition, expressions defined in the Glossary forming part of the Financial Services Authority Handbook[5] have those defined meanings;"
"qualifying units in or shares of a non-UCITS retail scheme" means that—
(a) the instrument constituting the scheme secures that redemption of the units or shares in question shall take place no less frequently than bi-monthly (see Rule 6.2.16(6) of the New Collective Investment Schemes Sourcebook omitting the words "Except where (7) applies, and", read with Rule 6.3.4(1), whether or not those Rules apply to the scheme), and
(b) a provision for suspension of dealings in exceptional conditions in accordance with Rule 7.2 of that Sourcebook (or any foreign procedure which is a direct foreign equivalent of that Rule) shall not be treated as a provision contrary to paragraph (a) of this definition;".
4.
In regulation 6(2)[6]—
(a) in sub-paragraph (a)(iii) for "component" substitute "plan";
(b) after sub-paragraph (b)(ii)(a) insert "and";
(c) omit sub-paragraph (b)(ii)(c) and the word "and" which precedes it;
(d) in sub-paragraph (g) for "or a" substitute ", fund of funds scheme or";
(e) in sub-paragraph (h) after "relevant UCITS" insert "or Chapter 5 UCITS";
(f) for sub-paragraphs (j) and (ja) substitute—
"
(j) qualifying units in or shares of a non-UCITS retail scheme, in circumstances where the units or shares satisfy the condition specified in paragraph (13);".
5.
In regulation 6(12)[7] omit "(b),".
6.
For regulation 6(13) substitute—
Joan Ryan
Tom Watson
Two of the Lords Commissioners of Her Majesty's Treasury
6th December 2005
EXPLANATORY NOTE
These Regulations amend the Personal Equity Plan Regulations 1989 (S.I. 1989/469). The principal effects of the amendments are (1) to provide that shares or units in non-UCITS retail schemes (a new type of collective investment scheme recognised by the Financial Services Authority) are qualifying investments for PEPs, provided that the shares or units can be redeemed at least twice monthly and (2) to clarify the wording of the "5% test" (which a number of investments must satisfy in order to qualify for PEPs).
Regulation 1 provides for citation and commencement and regulation 2 for amendment of the principal Regulations.
Regulation 3(a) makes a technical amendment to the definition of "fund of funds scheme".
Regulation 3(b) and 4(f) provide for shares and units in non-UCITS retail schemes to be qualifying investments for PEPs, subject to redemption conditions. Regulations 4(b) and (c) and 5 remove securities (temporarily) from the "5% test." Regulation 6 clarifies the wording of the 5% test for other investments.
A Regulatory Impact Assessment has not been prepared for this instrument as it has no impact (exceeding the de minimis limit) on business, charities or voluntary bodies.
ISBN
0 11 073742 3
Notes:
[1]
2005 c. 5back
[2]
1992 c. 12; section 151 was amended by section 85 of the Finance Act 1993 (c. 34), section 64(2) of the Finance Act 1995 (c. 4) and paragraph 436 of Schedule 1 to the Income Tax (Trading and Other Income) Act 2005.back
[3]
S.I. 1989/469; relevantly amended by S.I. [1998/3174], 2001/3629,2003/2748 and 2005/2562.back
[4]
2000 c. 8.back
[5]
Published by the Financial Services Authority.back
[6]
Regulation 6(2) was relevantly amended by S.I. 2001/3629, 2003/2748 and 2005/2562.back
[7]
Regulation 6(12) and (13) were inserted by S.I. 2003/2748 and regulation 6(12) was relevantly amended by S.I 2005/2562..back
ISBN
0 11 073742 3
© Crown copyright 2005
Prepared
9 December 2005
BAILII:
Copyright Policy |
Disclaimers |
Privacy Policy |
Feedback |
Donate to BAILII
URL: https://www.bailii.org/uk/legis/num_reg/2005/20053348.html
