Financial Services and Markets Bill - continued        House of Lords
PART XXVIII, MISCELLANEOUS - continued

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International obligations
International obligations.     389. - (1) If it appears to the Treasury that any action proposed to be taken by a relevant person would be incompatible with Community obligations or any other international obligations of the United Kingdom, they may direct that person not to take that action.
 
      (2) If it appears to the Treasury that any action which a relevant person has power to take is required for the purpose of implementing any such obligations, they may direct that person to take that action.
 
      (3) A direction under this section-
 
 
    (a) may include such supplemental or incidental requirements as the Treasury consider necessary or expedient; and
 
    (b) is enforceable, on an application made by the Treasury, by injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 1988.
      (4) "Relevant person" means-
 
 
    (a) the Authority;
 
    (b) any person exercising functions conferred by Part VI on the competent authority;
 
    (c) any recognised investment exchange (other than one which is an overseas investment exchange);
 
    (d) any recognised clearing house (other than one which is an overseas clearing house);
 
    (e) a person included in the list maintained under section 294; or
 
    (f) the scheme operator of the ombudsman scheme.
 
Tax treatment of levies and repayments
Tax treatment of levies and repayments.     390. - (1) In the Income and Corporation Taxes Act 1988 ("the 1988 Act"), in section 76 (expenses of management: insurance companies), for subsections (7) and (7A) substitute-
 
      (7) For the purposes of this section any sums paid by a company by way of a levy shall be treated as part of its expenses of management.
 
      (7A) "Levy" means-
 
 
    (a) a payment required under rules made under section 127(2) of the Financial Services and Markets Act 2000 ("the Act of 2000");
 
    (b) a levy imposed under the Financial Services Compensation Scheme;
 
    (c) a payment required under rules made under section 228 of the Act of 2000;
 
    (d) a payment required in accordance with the standard terms fixed under paragraph 18 of Schedule 16 to the Act of 2000.
      (2) After section 76 of the 1988 Act insert-
 
Levies and repayments under the Financial Services and Markets Act 2000.     76A. - (1) In computing the amount of the profits to be charged under Case I of Schedule D arising from a trade carried on by an authorised person (other than an investment company)-
 
 
    (a) to the extent that it would not be deductible apart from this section, any sum expended by the authorised person in paying a levy may be deducted as an allowable expense;
 
    (b) any payment which is made to the authorised person as a result of a repayment provision is to be treated as a trading receipt.
      (2) "Levy" has the meaning given in section 76(7A).
 
      (3) "Repayment provision" means any provision made by virtue of-
 
 
    (a) section 127(7) of the Financial Services and Markets Act 2000 ("the Act of 2000");
 
    (b) section 208(1)(e) of the Act of 2000.
      (4) "Authorised person" has the same meaning as in the Act of 2000.
 
Levies and repayments under the Financial Services and Markets Act 2000: investment companies.     76B. - (1) For the purposes of section 75 any sums paid by an investment company-
 
 
    (a) by way of a levy, or
 
    (b) as a result of an award of costs under costs rules,
  shall be treated as part of its expenses of management.
 
      (2) If a payment is made to an investment company as a result of a repayment provision, the company shall be charged to tax under Case VI of Schedule D on the amount of that payment.
 
      (3) "Levy" has the meaning given in section 76(7A).
 
      (4) "Costs rules" means-
 
 
    (a) rules made under section 224 of the Financial Services and Markets Act 2000;
 
    (b) provision relating to costs contained in the standard terms fixed under paragraph 18 of Schedule 16 to that Act.
      (5) "Repayment provision" has the meaning given in section 76A(3).
 
 
Gaming contracts
Gaming contracts.     391. - (1) No contract to which this section applies is void or unenforceable because of-
 
 
    (a) section 18 of the Gaming Act 1845, section 1 of the Gaming Act 1892 or Article 170 of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985; or
 
    (b) any rule of the law of Scotland under which a contract by way of gaming or wagering is not legally enforceable.
      (2) This section applies to any contract-
 
 
    (a) entered into by either or each party by way of business; and
 
    (b) the making or performance of which by either party constitutes a regulated activity falling within paragraph 2 of Schedule 2.
 
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