text:
Citation, commencement and interpretation
1
1
This Order may be cited as the London Ambulance Service National Health Service Trust (Establishment) Amendment Order 2006 and shall come into force on 1st July 2006.
2
In this Order “the Establishment Order ” means the London Ambulance Service National Health Service Trust (Establishment) Order 1996 .
Amendment of article 1 of the Establishment Order
2
In article 1 of the Establishment Order (citation, commencement and interpretation), at the appropriate alphabetical place insert —
“community health services” means any services which the Secretary of State may provide under section 3(1)(d) or (e) of, or Schedule 1 to, the National Health Service Act 1977 and any service which she has a duty to provide under section 5(1) of that Act ;
.
Amendment of article 3 of the Establishment Order
3
In article 3 of the Establishment Order (nature and functions of the trust), for paragraph (2) substitute —
2
The trust’s functions shall be to provide goods and services for the purposes of the health service and, in particular, to provide and manage —
a
ambulance and associated transport services; and
b
such other services, including community health services, as can reasonably be carried out in conjunction with the provision and management of ambulance and associated transport services.
.
Signed by authority of the Secretary of State for Health
Warner
Minister of State,
Department of Health
15th June 2006


type: legislation

jurisdiction: UK

text:
Citation, commencement and extent
1
1
These Regulations may be cited as the Police Pensions (Amendment) Regulations 2006.
2
These Regulations come into force on 5th April 2006 but, except for paragraph 8 of Schedule 1, have effect from 5th December 2005 .
3
These Regulations extend to England and Wales only.
Amendment of the Police Pensions Regulations 1987
2
The Police Pensions Regulations 1987 are amended in accordance with Schedule 1 to these Regulations.
Amendment of the Police Pensions (Additional Voluntary Contributions) Regulations 1991
3
The Police Pensions (Additional Voluntary Contributions) Regulations 1991 are amended in accordance with Schedule 2 to these Regulations.
Hazel Blears
Minister of State
Home Office
13th March 2006
We consent to the making of this Order
Dave Watts
Vernon Coaker
Two of the Lords Commissioners of Her Majesty’s Treasury
14th March 2006


text:
PART 1
GENERAL
Citation, commencement, application and interpretation
1
1
These Regulations may be cited as the National Health Service (Primary Medical Services and Pharmaceutical Services) (Miscellaneous Amendments) Regulations 2006 and shall come into force on 24th July 2006.
2
These Regulations apply in relation to England only.
3
In these Regulations —
“ GMS Contracts Regulations ” means the National Health Service (General Medical Services Contracts) Regulations 2004 ;
“ PMS Agreements Regulations ” means the National Health Service (Personal Medical Services Agreements) Regulations 2004 ; and
“ Pharmaceutical Regulations ” means the National Health Service (Pharmaceutical Services) Regulations 2005 .
PART 2
AMENDMENT OF THE GMS CONTRACTS REGULATIONS
Amendment of regulation 2 of the GMS Contracts Regulations
2
In regulation 2(1) (interpretation) of the GMS Contracts Regulations —
a
in the definition of “independent nurse prescriber”, for sub-paragraph (c) substitute the following sub-paragraph —
c
against whose name in that register is recorded an annotation signifying that he is qualified to order drugs, medicines and appliances as a community practitioner nurse prescriber, a nurse independent prescriber or as a nurse independent/supplementary prescriber;
;
b
insert the following definition at the appropriate place in the alphabetical order —
“pharmacist independent prescriber” means a person —
who is either engaged or employed by the contractor or is party to the contract,
who is registered in the Register of Pharmaceutical Chemists maintained in pursuance of section 2(1) of the Pharmacy Act 1954 or the register maintained in pursuance of Articles 6 and 9 of the Pharmacy (Northern Ireland) Order 1976 , and
against whose name in that register is recorded an annotation signifying that he is qualified to order drugs, medicines and appliances as a pharmacist independent prescriber;
;
c
in the definition of “prescriber”, after sub-paragraph (a) insert the following sub-paragraph —
aa
a pharmacist independent prescriber,
; and
d
in the definition of “supplementary prescriber”, in sub-paragraph (c), after “prescriber” insert “or, in the case of the Nursing and Midwifery Register, a nurse independent/supplementary prescriber”.
Amendment of Schedule 6 to the GMS Contracts Regulations
3
In Schedule 6 (other contractual terms) to the GMS Contracts Regulations —
a
in paragraph 50(3) and (4) (terms relating to the provision of dispensing services), after “independent nurse prescriber” at each place where it occurs (four times), insert “or a pharmacist independent prescriber”;
b
in paragraph 53(2) (qualifications of performers) —
i
omit the final “or” in paragraph (b);
ii
in paragraph (c) for “began.” substitute “began; or”; and
iii
after paragraph (c), add the following paragraph —
d
a medical practitioner, who —
i
is not a GP Registrar;
ii
is undertaking a programme of post-registration supervised clinical practice supervised by the Postgraduate Medical Education and Training Board (“a post-registration programme”);
iii
has notified the Primary Care Trust that he will be undertaking part or all of a post-registration programme in its area at least 24 hours before commencing any part of that programme taking place in the Primary Care Trust’s area; and
iv
has, with that notification, provided the Primary Care Trust with evidence sufficient for it to satisfy itself that he is undergoing a post-registration programme,
but only in so far as any medical services that the medical practitioner performs constitute part of a post-registration programme.
;
c
in paragraph 59(1) (which relates to conditions for employment and engagement), after the word “contract”, insert “, other than a medical practitioner falling within paragraph 53(2)(d),”;
d
in paragraphs 65(1) and (2) (which relate to independent nurse prescribers and supplementary prescribers), after “independent nurse prescriber”, at each place where it occurs (seven times), insert “, a pharmacist independent prescriber”; and
e
in the heading for paragraph 65, after “independent nurse prescribers” insert “, pharmacist independent prescribers”.
PART 3
AMENDMENT OF THE PMS AGREEMENTS REGULATIONS
Amendment of regulation 2 of the PMS Agreements Regulations
4
In regulation 2(1) (interpretation) of the PMS Agreements Regulations —
a
in the definition of “independent nurse prescriber”, for sub-paragraph (c) substitute the following sub-paragraph —
c
against whose name in that register is recorded an annotation signifying that he is qualified to order drugs, medicines and appliances as a community practitioner nurse prescriber, a nurse independent prescriber or as a nurse independent/supplementary prescriber;
;
b
insert the following definition at the appropriate place in the alphabetical order —
“pharmacist independent prescriber” means a person —
who is either engaged or employed by the contractor or is party to the agreement,
who is registered in the Register of Pharmaceutical Chemists maintained in pursuance of section 2(1) of the Pharmacy Act 1954 or the register maintained in pursuance of Articles 6 and 9 of the Pharmacy (Northern Ireland) Order 1976 , and
against whose name in that register is recorded an annotation signifying that he is qualified to order drugs, medicines and appliances as a pharmacist independent prescriber;
;
c
in the definition of “prescriber”, after sub-paragraph (a) insert the following sub-paragraph —
aa
a pharmacist independent prescriber,
; and
d
in the definition of “supplementary prescriber”, in sub-paragraph (c), after “prescriber” insert “or, in the case of the Nursing and Midwifery Register, a nurse independent/supplementary prescriber”.
Amendment of Schedule 5 to the PMS Agreements Regulations
5
In Schedule 5 (other contractual terms) to the PMS Agreements Regulations —
a
in paragraph 50(3) and (4) (terms relating to the provision of dispensing services), after “independent nurse prescriber” at each place where it occurs (four times), insert “or a pharmacist independent prescriber”;
b
in paragraph 53(2) (qualifications of performers) —
i
omit the final “or” in paragraph (b);
ii
in paragraph (c) for “began.” substitute “began; or”; and
iii
after paragraph (c), add the following paragraph —
d
a medical practitioner, who —
i
is not a GP Registrar;
ii
is undertaking a programme of post-registration supervised clinical practice supervised by the Postgraduate Medical Education and Training Board (“a post-registration programme”);
iii
has notified the Primary Care Trust that he will be undertaking part or all of a post-registration programme in its area at least 24 hours before commencing any part of that programme taking place in that the Primary Care Trust’s area; and
iv
has, with that notification, provided the Primary Care Trust with evidence sufficient for it to satisfy itself that he is undertaking a post-registration programme,
but only in so far as any medical services that the medical practitioner performs constitute part of a post-registration programme.
;
c
in paragraph 59(1) (which relates to conditions for employment and engagement), after the word “agreement”, insert “, other than a medical practitioner falling within paragraph 53(2)(d),”;
d
in paragraphs 65(2) and (3) (which relate to independent nurse prescribers and supplementary prescribers), after “independent nurse prescriber”, at each place where it occurs (seven times), insert “, a pharmacist independent prescriber”; and
e
in the heading for paragraph 65, after “independent nurse prescribers” insert “, pharmacist independent prescribers”.
PART 4
AMENDMENT OF THE PHARMACEUTICAL REGULATIONS
Amendment of regulation 2 of the Pharmaceutical Regulations
6
In regulation 2 (1) (interpretation) of the Pharmaceutical Regulations —
a
in the definition of “PMS contractor”, for “Primary Care Trust or a Strategic Health Authority” substitute “relevant body”, and
b
insert the following definition in the appropriate place in the alphabetical order —
“relevant body”, in relation to the definition of a PMS contractor, means —
in a case where a Primary Care Trust is providing services under a PMS agreement with a Strategic Health Authority, that Strategic Health Authority, and
in all other cases, a Primary Care Trust;
.
Amendment of Schedule 2 to the Pharmaceutical Regulations
7
In Schedule 2 (terms of service of dispensing doctors) to the Pharmaceutical Regulations, in paragraph 8 (fees and charges), for paragraph 8(2) substitute —
2
Where a dispensing doctor provides a drug or appliance under pharmaceutical services or provides any additional service associated with the dispensing of such drugs and appliances in accordance with an agreement with the Primary Care Trust —
a
in accordance with this Schedule or an agreement with the Primary Care Trust; and
b
had the drug, appliance or additional service been provided by a contractor providing dispensing services under a GMS contract, the contractor would have been entitled, by virtue of directions given by the Secretary of State under section 28T of the Act, to a payment —
i
in respect of the drug or appliance; or
ii
in respect of the additional service provision,
the Primary Care Trust shall credit him with the payment.
.
Signed on behalf of the Secretary of State
Warner
Minister of State,
5th June 2006


text:
1
This Order may be cited as The Electoral Administration Act 2006 (Commencement No. 1 and Transitional Provisions) (Amendment) Order 2006.
2
The Electoral Administration Act 2006 (Commencement No. 1 and Transitional Provisions) Order 2006 is amended in accordance with articles 3 and 4.
3
In Schedule 1 for paragraph 20 substitute —
20
In relation to England and Wales and Scotland
a
section 61 (Regulation of loans etc. ), except so far as —
i
it applies to minor parties within the meaning of section 160(1) of the 2000 Act ;
ii
it provides, by subsection (1), for the insertion of section 71S(3) of the 2000 Act;
iii
it provides, by subsection (5), for the insertion of paragraphs 2(3) and 3(2) of Schedule 6A to the 2000 Act;
b
section 62 (Regulation of loans: power to make provision for candidates, third parties and referendums).
4
In paragraph 25(m) of Schedule 1 after “and Scotland” insert “, except so far as they apply to minor parties within the meaning of section 160(1) of the 2000 Act, or the members or members associations of such parties”.
Signed by the authority of the Secretary of State
Bridget Prentice
Parliamentary Under Secretary of State
Department for Constitutional Affairs
Date 17th August 2006


text:
1
This Order may be cited as the Child Abduction and Custody Act 1985 (Jersey) Order 2006 and shall come into force on 21st August 2006.
2
The Child Abduction and Custody Act 1985 shall have effect in the United Kingdom as if any reference to —
a
any order which may be made;
b
any proceedings which may be brought; or
c
any other thing which may be done,
in, or in any part of, the United Kingdom, included a reference to any corresponding order which may be made or, as the case may be, proceedings which may be brought or other thing which may be done in Jersey.
A. K. Galloway
Clerk of the Privy Council


text:
Citation, commencement and interpretation
1
1
This Order may be cited as the Northumberland, Tyne and Wear National Health Service Trust (Establishment) and the South of Tyne and Wearside Mental Health National Health Service Trust, the Northgate and Prudhoe National Health Service Trust and the Newcastle, North Tyneside and Northumberland Mental Health National Health Service Trust (Dissolution) Order 2006 and shall come into force on 1 st April 2006.
2
In this Order —
“ the Act ” means the National Health Service and Community Care Act 1990;
“community health services” means any services which the Secretary of State may provide under section 3(1)(d) or (e) of, or Schedule 1 to, the National Health Service Act 1977 and any service which she has a duty to provide under section 5(1) of that Act ;
“dissolution date” means the date this Order comes into force;
“operational date” has the meaning assigned to it in paragraph 3(1)(e) of Schedule 2 to the Act; and
“the trust” means the Northumberland, Tyne and Wear National Health Service Trust established by article 2 of this Order.
Establishment and name of the trust
2
There is established a National Health Service trust which shall be called the Northumberland, Tyne and Wear National Health Service Trust.
Nature and functions of the trust
3
1
The trust is established for the purposes specified in section 5(1) of the Act.
2
The trust’s functions shall be to provide goods and services, namely hospital accommodation and services, and community health services, for the purposes of the health service.
Directors of the trust
4
The trust shall have, in addition to the chairman, 5 executive directors and 5 non-executive directors.
Operational date and accounting date of the trust
5
1
The operational date of the trust shall be 1 st April 2006.
2
The accounting date of the trust shall be 31 st March.
Dissolution of NHS trusts and revocation of orders
6
On the dissolution date —
a
the South of Tyne and Wearside Mental Health National Health Service Trust, which was established by the South of Tyne and Wearside Mental Health National Health Service Trust (Establishment) and the Priority Healthcare Wearside National Health Service Trust (Dissolution) Order 2002 ;
b
the Northgate and Prudhoe National Health Service Trust, which was established by the Northgate and Prudhoe National Health Service Trust (Establishment) Order 1994 ; and
c
the Newcastle, North Tyneside and Northumberland Mental Health National Health Service Trust, which was established by the Newcastle, North Tyneside and Northumberland Mental Health National Health Service Trust (Establishment) Order 2001 ,
are dissolved, and accordingly their Establishment Orders are revoked.
Signed by authority of the Secretary of State for Health
Liam Byrne
Parliamentary Under Secretary of State,
Department of Health
16th March 2006


text:
Citation
1
This Order may be cited as the Finance (No. 2) Act 2005, Section 17(1), (Appointed Day) Order 2006.
Appointed days
2
1
The days appointed for the coming into force of section 17(1) of the Finance (No. 2) Act 2005 (“section 17(1)”) are those set out in this article.
2
Section 17(1) shall come into force for the purposes of income tax —
a
for the year 2006-07 and subsequent years of assessment, and
b
for distributions made on or after 6th April 2006.
3
Section 17(1) shall come into force for the purposes of corporation tax —
a
on income, for accounting periods beginning on or after 1st April 2006,
b
on chargeable gains, in relation to disposals made on or after 1st April 2006, and
c
for distributions made on or after 1st April 2006.
Gillian Merron
Joan Ryan
Two of the Lords Commissioners of Her Majesty’s Treasury
30th March 2006


text:
Citation, commencement and interpretation
1
1
These Regulations may be cited as the Pension Protection Fund (Pension Sharing) Regulations 2006 and shall come into force on 1st August 2006.
2
In these Regulations —
“the 1999 Act ” means the Welfare Reform and Pensions Act 1999 ;
“the 2004 Act ” means the Pensions Act 2004.
Modification of the 1999 Act
2
1
Paragraph (2) applies in relation to any case specified in section 220(2) of the 2004 Act (pension sharing).
2
In a case in relation to which this paragraph applies, Chapter 1 of Part 4 of the 1999 Act (pension sharing) is modified so that it applies as if —
a
in section 27 (scope of mechanism) —
i
after subsection (2) there were inserted —
2A
Where subsections (4) and (5) apply, a person’s shareable rights under a pension arrangement include any entitlement to PPF compensation brought within the remit of a pension sharing order or provision by virtue of those subsections.
; and
ii
after subsection (3) there were added —
4
Subject to subsection (6), subsection (5) applies where a pension sharing order or provision —
a
imposes requirements on the trustees or managers of an occupational pension scheme for which the Board has assumed responsibility in accordance with Chapter 3 of Part 2 of the Pensions Act 2004 or Chapter 3 of Part III of the Pensions (Northern Ireland) Order 2005 (pension protection), and
b
was made before the trustees or managers of the scheme received the transfer notice in relation to the scheme.
5
A pension sharing order or provision is, from the time when the trustees or managers of the scheme receive the transfer notice, to be applied as if references in that order or provision to —
a
the trustees or managers of the scheme were references to the Board, and
b
any pension to which the party with pension rights is, or may be, entitled under the scheme were references to PPF compensation to which that person is, or may be, entitled in respect of the pension.
6
Subsection (5)(b) does not apply in the case of liabilities that fall to be discharged by the Board under section 170 of the Pensions Act 2004 or article 154 of the Pensions (Northern Ireland) Order 2005 (discharge of liabilities in respect of money purchase benefits).
7
In this section, “transfer notice” has the meaning given by section 160 of the Pensions Act 2004 or, as the case may be, article 144 of the Pensions (Northern Ireland) Order 2005 (transfer notice).
;
b
in section 30 (cash equivalents), after subsection (2) there were added —
3
In the case of shareable rights to which section 27(2A) applies, the cash equivalent shall be calculated and verified in such manner as may be approved by the Board.
;
c
in section 46(1) (interpretation of Chapter 1) —
i
in the definition of “pension arrangement”, after paragraph (e) there were added —
f
the Pension Protection Fund;
; and
ii
after the definition of “personal pension scheme” there were inserted —
“PPF compensation” means compensation payable under the pension compensation provisions specified in section 162(2) of the Pensions Act 2004 or article 146(2) of the Pensions (Northern Ireland) Order 2005 (the pension compensation provisions);
; and
d
in Schedule 5 (pension credits: mode of discharge), after paragraph 3 (other unfunded occupational pension schemes) there were inserted —
Pension Protection Fund: compensation
3A
1
This paragraph applies to a pension credit which derives from an occupational pension scheme for which the Board has assumed responsibility.
2
The Board shall discharge its liability in respect of a pension credit in accordance with Chapter 3 of Part 2 of the Pensions Act 2004 or Chapter 3 of Part III of the Pensions (Northern Ireland) Order 2005 (pension protection).
3
For the purposes of sub-paragraph (2) —
a
the person entitled to the pension credit is to be treated as if he had been a member of the scheme from which a pension credit to which this paragraph applies derives immediately before the assessment date in relation to that scheme, and
b
the Board shall determine the PPF compensation payable to the person entitled to the pension credit in accordance with the relevant provision specified in sub-paragraph (2) from the effective date of the pension sharing order or provision on which the credit depends.
4
In sub-paragraph (3) “assessment date” has the meaning given by section 142(1) of the Pensions Act 2004 or, as the case may be, article 126(1) of the Pensions (Northern Ireland) Order 2005.
Pension Protection Fund: liabilities in respect of money purchase benefits
3B
1
This paragraph applies to a pension credit which derives from —
a
an occupational pension scheme for which the Board has assumed responsibility, and
b
any liabilities in respect of money purchase benefits under that scheme.
2
The Board shall discharge its liability in respect of a pension credit to which this paragraph applies in accordance with regulations made under section 170(2) and (3) of the Pensions Act 2004 or article 154(2) and (3) of the Pensions (Northern Ireland) Order 2005 (discharge of liabilities in respect of money purchase benefits).
.
Modification of the 2004 Act
3
1
Paragraph (2) applies in relation to any case specified in section 220(1) of the 2004 Act (pension sharing).
2
In a case in relation to which this paragraph applies, Schedule 7 to the 2004 Act (pension compensation provisions) is modified so that it applies as if, after paragraph 2, there were inserted —
2A
In the case of a person in respect of whose shareable rights under a pension arrangement to which section 31 of the Welfare Reform and Pensions Act 1999 (reduction of benefit) applies, any compensation determined in accordance with this Schedule to which he may be entitled shall be reduced by the appropriate percentage, calculated in accordance with the provisions of that section, including revaluation of the pension debit in accordance with the admissible rules of the scheme.
2B
In paragraph (2A) —
“pension arrangement” has the meaning given by section 46(1) of the Welfare Reform and Pensions Act 1999;
“shareable rights” has the meaning given by section 27 of that Act, as modified by the Pension Protection Fund (Pension Sharing) Regulations 2006.
.
Signed by authority of the Secretary of State for Work and Pensions
James Purnell
Minister of State,
Department for Work and Pensions
25th June 2006


text:
Citation, commencement, application and interpretation
1
1
These Regulations may be cited as the National Health Service (Performers Lists) Amendment Regulations 2006 and shall come into force on 3rd July 2006.
2
These Regulations apply in relation to England only.
3
In these Regulations “the principal Regulations ” means the National Health Service (Performers Lists) Regulations 2004 .
Amendment of regulation 13 of the principal Regulations
2
In regulation 13 of the principal Regulations (suspension) —
a
at the beginning of paragraph (9), insert “Except as provided in paragraph (9A),” and
b
after paragraph (9) insert —
9A
For the purpose of an application by a performer who is suspended under these Regulations to be included in another performers list, he shall be treated as still included in the list from which he is suspended, notwithstanding that suspension.
.
Amendment of regulation 22 of the principal Regulations
3
In regulation 22 of the principal Regulations (medical performers list) —
a
in paragraph (1), for “(2) and (3)”, substitute “(2) to (3)”; and
b
after paragraph (2) insert paragraphs (2A) and (2B) —
2A
A medical practitioner who falls within paragraph (2B) may perform primary medical services in the area of a Primary Care Trust, but only in so far as the performance of those services constitutes part of a programme of post-registration supervised clinical practice approved by the Board (“a post-registration programme”).
2B
A medical practitioner falls within this paragraph if he —
a
is not a GP Registrar;
b
is undertaking a post-registration programme;
c
has notified the Primary Care Trust that he will be undertaking part or all of a post-registration programme in its area at least 24 hours before commencing any part of that programme taking place in the Primary Care Trust’s area; and
d
has, with that notification, provided the Primary Care Trust with evidence sufficient for it to satisfy itself that he is undergoing a post-registration programme.
.
Signed by authority of the Secretary of State for Health
Warner
Minister of State,
Department of Health
23rd May 2006


text:
Citation and commencement
1
This Order may be cited as the Merchant Shipping (Prevention of Pollution by Sewage and Garbage) Order 2006 and comes into force on 12th December 2006.
Revocations
2
1
The following Orders and articles are revoked —
a
the Merchant Shipping (Prevention of Pollution by Garbage) Order 1988 ;
b
the Merchant Shipping (Prevention of Pollution by Garbage) (Amendment) Order 1993 ;
c
article 3 of the Merchant Shipping (Prevention of Pollution) (Amendment) Order 1997 ; and
d
article 3 of the Merchant Shipping (Prevention of Pollution) (Amendment) Order 1998 .
Regulations to give effect to Annex IV
3
The Secretary of State may make regulations for the prevention of pollution by sewage from ships for the purpose of giving effect to Annex IV to the Convention.
Regulations to give effect to Annex V
4
The Secretary of State may make regulations for the prevention of pollution by garbage from ships for the purpose of giving effect to Annex V to the Convention.
Provisions supplementary to articles 3 and 4
5
Without prejudice to the generality of articles 3 and 4, the regulations referred to in those articles may in particular include provision —
a
with respect to the carrying out of surveys and inspections and the issue, duration and recognition of certificates;
b
with respect to —
i
the application of the regulations to the Crown,
ii
the extraterritorial operation of the regulations, and
iii
the extension of the provisions of the regulations, with or without modifications, to any relevant British possession;
c
that a specified contravention of the regulations shall be an offence punishable on summary conviction by a fine not exceeding the statutory maximum or on conviction on indictment by a fine;
d
that any such contravention shall be an offence punishable only on summary conviction by a fine not exceeding level 5 on the standard scale;
e
in connection with offences created by the regulations, corresponding to the provision made in connection with offences under section 131 of the Merchant Shipping Act 1995 by sections 143(6), 144 and 146 of that Act (whether by applying, or making provision for the application of, any of those sections, subject to such modifications as may be specified in the regulations); and
f
for detaining a ship in respect of which a contravention of the regulations is suspected to have occurred, and, in relation to that ship, for applying section 284 of the Merchant Shipping Act 1995 with such modifications as may be specified in the regulations.
Application and modification of section 131(3) of the Merchant Shipping Act 1995
6
Section 131(3) of the Merchant Shipping Act 1995 (which provides that a person guilty of an offence under that section shall be liable on summary conviction to a fine not exceeding £250,000 or on conviction on indictment to a fine) shall apply in respect of such contravention of the regulations made under this Order as may be specified in those regulations as it applies in respect of an offence under section 131, but as if in subsection (3)(a) for “£250,000” there were substituted “£25,000”.
Christine Cook
Deputy Clerk of the Privy Council


text:
Citation and commencement
1
This Order may be cited as the Bus Lane Contraventions (Approved Local Authorities) (England) (Amendment) (No. 6) Order 2006 and shall come into force on 3rd January 2007.
Specification of approved local authorities
2
Leicester City Council is specified as an approved local authority for the purposes of section 144 of the Transport Act 2000 (civil penalties for bus lane contraventions) .
Amendment to the Bus Lane Contraventions (Approved Local Authorities) (England) Order 2005
3
1
The Schedule to the Bus Lane Contraventions (Approved Local Authorities) (England) Order 2005 shall be amended as set out in paragraph (2).
2
After the row in the table relating to Leeds City Council, insert the following row —
Leicester City Council S.I. 2006/3211
Signed by authority of the Secretary of State
G. Merron
Parliamentary Under Secretary of State
Department for Transport
1st December 2006


text:
1
This Order may be cited as the Serious Organised Crime and Police Act 2005 (Consequential and Supplementary Amendments to Secondary Legislation) Order 2006 and shall come into force on 1st April 2006.
2
The Schedule to this Order (amendment of statutory instruments and statutory rules of Northern Ireland relating to the National Criminal Intelligence Service (“ NCIS ”) and the National Crime Squad (“ NCS ”) and in connection with the Serious Organised Crime Agency (“ SOCA ”)) shall have effect.
Paul Goggins
Parliamentary Under-Secretary of State
Home Office
6th March 2006


text:
Citation and commencement
1
1
This Order may be cited as the Armed Forces Pension Scheme etc. Amendment Order 2006.
2
This Order comes into force on 6th April 2006.
Interpretation
2
In this Order —
“the AFPS 1975” has the meaning given in rule A.1(4) of the AFPS 2005,
“the AFPS 2005” means the Armed Forces Pension Scheme 2005 established by article 2 of the Armed Forces Pension Scheme Order 2005 , and
“the Scheme” means that Scheme.
Eligible children
3
In rule E.9 of the Scheme for paragraph (4) substitute —
4
In the case of a pensioner member who died before 6th April 2006, condition C is that the person is unable to engage in gainful employment because of physical or mental disability from which the person began to suffer before the age of 23.
4A
In the case of any other member, condition C is that the person is under 23 and was at the date of the member’s death dependant on the member because of physical or mental impairment and unable because of that impairment to engage in gainful employment.
.
Entitlement to ill-health pensions
4
1
In rule D5(1) of the Scheme (early payment of benefits: active members with permanent serious ill-health) for sub-paragraph (a) substitute —
a
in the opinion of the Secretary of State the member has suffered a permanent breakdown in health involving incapacity for any full-time employment,
aa
the Secretary of State has received evidence from a registered medical practitioner that the member is (and will continue to be) incapable of carrying on his occupation because of physical or mental impairment, and
.
2
In rule D.6(1) of the Scheme (early payment of benefits: active members with significant impairment of capacity for gainful employment) for sub-paragraph (a) substitute —
a
in the opinion of the Secretary of State the member has suffered a breakdown in health as a result of which his capacity for gainful employment is significantly impaired,
aa
the Secretary of State has received evidence from a registered medical practitioner that the member is (and will continue to be) incapable of carrying on his occupation because of physical or mental impairment, and
.
3
In rule D.7(1) of the Scheme (early payment of benefits: deferred members with permanent serious ill-health) for sub-paragraph (a) substitute —
a
in the opinion of the Secretary of State the member has suffered a permanent breakdown in health involving incapacity for any full-time employment (see rule D.5(2) and (3)),
aa
the Secretary of State has received evidence from a registered medical practitioner that the member is (and will continue to be) incapable of carrying on his occupation because of physical or mental impairment, and
.
4
In rule D.8 of the Scheme (member’s requests for review of ill-health awards)
a
in paragraphs (5) and (7) in the words following sub-paragraph (b) after “then” insert “the member’s entitlement under rule D.6 ceases and”.
b
for paragraphs (9)(b) and (10)(b) substitute —
b
the conditions in rule D.6(1)(aa) and (b) are met,
, and
c
in paragraph (9) in the words following sub-paragraph (b) for “as if the conditions mentioned in that rule were met at the time the member ceased to be in service by virtue of which he was eligible to be an active member of the Scheme” substitute “from the time when the ill-health condition (as defined in paragraph 1 of Schedule 28 to the Finance Act 2004) is first met”.
d
in paragraph (10) in the words following sub-paragraph (b) for “as from the date on which the review was requested” substitute “from the date when the ill-health condition (as defined in paragraph 1 of Schedule 28 to the Finance Act 2004) is first met”.
Option for members in serious ill-health to exchange whole pension for lump sum
5
1
Rule D.11 of the Scheme (option for members in serious ill-health to exchange whole pension for lump sum) is amended as follows.
2
In paragraph (1) for the words from “if” onwards substitute —
if the Secretary of State —
is satisfied that the member is expected to live for less than one year, and
has received evidence from a registered medical practitioner that that is the case.
.
3
In paragraph (2) for “a member” substitute “an active member or a deferred member”.
4
After paragraph (2) insert —
2A
Where a pension credit member so opts, he is to be paid as soon as is reasonably practicable an amount that in the opinion of the Scheme actuary is equivalent to the value of his pension credit rights.
.
Power to consult before determining questions, especially relating to ill-health
6
1
The existing rule J.9 of the Scheme (determination of questions) is to become paragraph (1) of that rule.
2
After that paragraph insert —
2
But in determining any such question the Secretary of State may consult with such persons as he considers appropriate to advise him about the question and, in particular, in forming an opinion about any question relating to the health of any person for the purposes of Part D, he may consult the Scheme medical adviser.
.
3
In the following provisions of the Scheme omit “after consultation with the Scheme medical adviser” —
a
rule D5(2) and (3) (early payment of benefits: active members with permanent serious ill-health),
b
rule D.8(4)(b), (5)(a), (7)(a), (8)(b), (9) and (10) (member’s requests for review of ill-health awards),
c
rule D.9(3), (4) and (5) (Secretary of State’s power to review ill-health awards), and
d
rule D.15(6)(b) (procedure for election for allocation of pension).
Early payment of pensions with actuarial reduction
7
1
Rule D.4 of the Scheme (early payment of pensions with actuarial reduction) is amended as follows.
2
In paragraph (1) —
a
for “D.2 or D.3”, in the first place where it occurs, substitute “or D2”,
b
for “D.2 or D.3”, in the second place where it occurs, substitute “D2”,
c
omit “or (3)”, and
d
for the second sentence substitute —
In this paragraph “the relevant age” means 55.
.
3
Omit paragraph (3).
4
In paragraph (4) omit “or, as the case may be, rule D.3(4)”.
Allocation
8
1
In rule D.14 of the Scheme (election to allocate pension) in paragraph (4) (limit on allocation to one-half of the member’s annual pension before any exercise of the option to exchange lump sum for pension) for “one-half” substitute “the permitted percentage”.
2
After that paragraph insert —
4A
In paragraph (4) “the permitted percentage” means 37.5% or such lower percentage as appears to the Scheme administrator to be capable of being allocated under this rule without risking that a part of the pension to which any person becomes entitled on the death of the member after 75 does not qualify as a dependants' scheme pension for the purposes of section 167 of the Finance Act 2004 (the pension death benefit rules) (see paragraphs 16 to 16B of Schedule 28 to that Act).
.
3
In rule E.12(4) of the Scheme (amount of children’s pensions where a pensioner member leaves a surviving adult dependant and two or more children) for “(disregarding rules D.10, E.6 and E.7)” substitute “(disregarding any increase or reduction made by virtue of rule D.10, D.16, E.6 or E.7)”.
Applications to transfer in under rule F.7
9
In rule F.8 of the Scheme (procedure for applications under rule F.7) —
a
in paragraph (2) (under which an application for a transfer value payment to be accepted by the Scheme under the public sector transfer arrangements must be made within one year of the member becoming eligible to be a member of the Scheme) after “public sector transfer arrangements” insert “or to which paragraph (3) applies”,
b
for sub-paragraph (a) of paragraph (2) substitute —
a
in the case of a transfer value payment to be made under the public sector transfer arrangements, must be made during the period of one year beginning with the day on which the member becomes eligible to be an active member,
aa
in the case of a transfer value payment to which paragraph (3) applies, must be made during the period of one year beginning with the relevant day, unless paragraph (4) applies, and
.
c
after paragraph (2) add —
3
This paragraph applies to —
a
a transfer value payment from a personal pension scheme, or
b
a transfer value payment relating only to voluntary contribution rights.
4
This paragraph applies in the case of a transfer value payment within paragraph (3)(b) (“the relevant payment”) if —
a
the applicant is also applying for the Scheme to accept a transfer value payment from a different occupational pension scheme from that by which the relevant payment is payable (“the second scheme”),
b
the second scheme relates to the same employment as that to which the scheme by which the relevant payment is payable relates, and
c
the transfer value payment payable by the second scheme relates to rights that are or include rights that are not voluntary contribution rights.
5
In this article —
“occupational pension scheme” has the meaning given in section 1 of the Pension Schemes Act 1993,
“relevant date” means the day on which the applicant becomes eligible to be an active member of the scheme or 6th April 2006, whichever is the later, and
“voluntary contribution rights” means rights under an occupational pension scheme that derive from voluntary contributions made by the applicant.
.
Cases where certain charges under the Finance Act 2004 apply
10
1
After rule J.10 of the scheme insert —
Payment and deduction of tax
Payment on behalf of members of lifetime allowance charge
J.11
1
A member may request the person who is the scheme administrator for the purposes of section 217 of the Finance Act 2004 (“the administrator”) to pay on his behalf any amount that is payable by way of the lifetime allowance charge under section 214 of that Act when —
a
an event that is a benefit crystallisation event listed in the table in section 216(1) of that Act occurs in relation to him, and
b
the member and the administrator are jointly and severally liable to the charge in respect of the event.
2
Such a request may only be made by notice in writing given before the event occurs.
3
The administrator may only comply with such a request if the member pays him the amount in question on or before the date on which the event occurs.
Reduction of benefits and transfer values where lifetime allowance charge payable
J.12
1
This rule applies if —
a
an event that is a benefit crystallisation event listed in the table in section 216(1) of the Finance Act 2004 (“the table”) occurs in relation to a member,
b
the member and the person who is the scheme administrator for the purposes of section 217 of that Act (“the administrator”) are jointly and severally liable to the charge in respect of the event, and
c
no request has been duly made under rule J.11 in relation to the event or, if such a request has been made, the administrator is prevented from complying with it by paragraph (3) of that rule.
2
Where this rule applies —
a
the administrator must pay the tax payable on the event,
b
if the event is benefit crystallisation event 8 in the table (transfer to qualifying recognised overseas pension scheme), the amount or value of the sums or assets transferred must be reduced, and
c
in the case of any other event, the amount or value of the benefits payable to or in respect of the member must be reduced.
3
The amount or value of the reduction must be such that, in the opinion of the Scheme actuary, it fully reflects the amount of the tax so paid.
Deduction of special lump sum death benefits charge
J.13
Before a payment is made that is a pension protection lump sum death benefit for the purposes of Part 4 of the Finance Act 2004 (see paragraph 14 of Schedule 29 to that Act), the person who is the scheme administrator for the purposes of section 217 of that Act may deduct from it any tax due in respect of the payment under section 206 of that Act (the special lump sum death benefits charge).
.
2
In the Arrangement of Rules of the Scheme after “J.10 Information and evidence” insert —
Payment and deduction of tax
J.11
Payment on behalf of members of lifetime allowance charge
J.12
Reduction of benefits and transfer values where lifetime allowance charge payable
J.13
Deduction of special lump sum death benefits charge.
.
Miscellaneous amendments relating to changes in status of schemes on 6th April 2006
11
1
In rules D.2(1)(b), D.5(1)(b)(ii), D.6(1)(b)(ii) and D.7(1)(b)(ii) of the Scheme (entitlement to pensions where transfers in from other schemes have been accepted under Part F) for “was formerly entitled to rights under a personal pension scheme or a retirement annuity contract in respect of which a transfer value payment has been accepted” substitute “is entitled to short service benefit by virtue of section 71 of the Pension Schemes Act 1993 (basic principles as to short service benefit) because of a transfer value payment having been accepted”.
2
In rule F.7 —
a
in paragraph (1) (applications for transfers in from schemes of the kind mentioned in paragraph (2) of that rule) for “under any of the following kinds of scheme or arrangement” substitute “under any scheme or arrangement to which a transfer value payment may be made under Chapter 4 of Part 4 of the Pension Schemes Act 1993 (transfer values)”, and
b
omit paragraph (2).
3
In rule A.1(4) (definitions) —
a
in the definition of “personal pension scheme” for “has been approved” onwards substitute “is registered under section 153 of the Finance Act 2004 (registration of pension schemes)”, and
b
omit the definition of “retirement annuity contract”.
Eligibility for membership of AFPS 2005 etc.
12
1
In rule B.1(a)(ii) of the Scheme (eligibility for membership) for “a Nepalese person recruited in Nepal” substitute “an active member of the Gurkha Pension Scheme constituted by the Royal Warrant of 19th December 1949 (see Army Order 151 of 1949)”.
2
In the definitions of “member” in article 3 of the Armed Forces Early Departure Payments Scheme Order 2005 and article 3(1) of the Armed Forces Redundancy Payments Scheme Order 2006 for “a Nepalese person recruited in Nepal” substitute “an active member of the Gurkha Pension Scheme constituted by the Royal Warrant of 19th December 1949 (see Army Order 151 of 1949)”.
Evidence required for payments under the Armed Forces Early Departure Payments Scheme Order 2005
13
In article 16 of the Armed Forces Early Departure Payments Scheme Order 2005 (lump sum awards: incapacity for armed forces service) for paragraph (1)(a) substitute —
a
in the opinion of the Secretary of State the person is unfit for service as a member of the armed forces because of physical or mental impairment,
aa
the Secretary of State has received evidence from a registered medical practitioner of that unfitness,
.
Revocations
14
1
The Armed Forces Pension Scheme Order 2005 is revoked to the extent specified in the third column of the Schedule.
2
The revocations specified in the Schedule include the revocation of article 2(2) of the Armed Forces Pension Scheme Order 2005 and Schedule 2 to that Order (by virtue of which the AFPS 2005 temporarily had effect with the modifications specified in that Schedule and certain other modifications) which are spent.
Signed by authority of the Secretary of State for Defence.
Don Touhig
Under Secretary of State Ministry of Defence
13th March 2006


text:
Citation and commencement
1
These Regulations may be cited as the Motor Vehicles (Tests) (Amendment) (No. 2) Regulations 2006 and shall come into force on 7th November 2006.
Preliminary
2
The Motor Vehicles (Tests) Regulations 1981 shall be amended as follows.
Amendments to regulation 20 (fees for examinations)
3
1
Regulation 20 shall be amended as follows.
2
In the provisions specified in column (1) of the following Table for the amounts specified in column (2) there shall be substituted the amounts specified in column (3).
TABLE
(1) (2) (3) Regulation Existing Amount (£) Substituted Amount (£)
20(1)(a) 23.80 27.15 20(1)(aa) 30.40 34.65 20(1)(b) 30.40 34.65 20(1)(c)(i) 46.15 52.60 20(1)(c)(ii) 44.15 50.35 20(1)(ca) 51.55 58.75 20(1)(d)(i) 65.00 74.10 20(1)(d)(ii) 47.95 54.65 20(1)(da)(i) 100.40 114.45 20(1)(da)(ii) 64.85 73.95 20(1)(f) 47.20 53.80
Amendment to regulation 25 (charges for entries in the electronic record and payments on account)
4
In regulation 25(1), for “£1.44” there shall be substituted “£1.71”.
Signed by authority of the Secretary of State
S.J. Ladyman
Minister of State
Department for Transport
7th October 2006


text:
Citation and commencement
1
This Order may be cited as the Pension Protection Fund (Pension Compensation Cap) Order 2006 and shall come into force on 1st April 2006.
The compensation cap
2
The amount specified for the purposes of paragraph (a) of the definition of “the compensation cap” in paragraph 26(7) of Schedule 7 to the Pensions Act 2004 (pension compensation provisions – compensation cap) shall be £28,944.45.
Revocation
3
The Pension Protection Fund (Pension Compensation Cap) Order 2005 is revoked.
Signed by authority of the Secretary of State for Work and Pensions.
Stephen C. Timms
Minister of State,
Department for Work and Pensions
13th February 2006


text:
General
Citation, commencement and effect
1
1
This Order may be cited as the Finance Act 2002, Schedule 26, (Parts 2 and 9) (Amendment) Order 2006, and shall come into force on 30th December 2006.
2
Subject to paragraph (3), this Order has effect in relation to accounting periods ending on or after the date on which this Order comes into force.
3
Article 7 has effect in relation to disposals occurring on or after the day on which this Order comes into force.
Amendment of Schedule 26: general
2
Schedule 26 to the Finance Act 2002 (derivative contracts) is amended as follows.
Amendment of Part 2 of Schedule 26
Amendment of paragraph 2 of Schedule 26
3
In paragraph 2 (derivative contracts and relevant contracts) for sub-paragraphs (3) to (5) substitute —
2A
For provisions which treat a company as being party to a relevant contract see —
a
section 94A of the Finance Act 1996 (loan contracts with embedded derivatives);
b
paragraph 2A below (non-financial contracts with embedded derivatives);
c
paragraph 2B below (hybrid derivatives).
2B
In this Schedule “plain vanilla contract” means a relevant contract other than one to which a company is treated as being party by virtue of a provision mentioned in sub-paragraph (2A).
.
Insertion of paragraphs 2A and 2B of Schedule 26
4
After paragraph 2 insert —
Non-financial contracts with embedded derivatives
2A
1
This paragraph applies where —
a
a company is party to a contract (a “non-financial contract”) which is not a loan relationship and to which paragraph 2B does not apply, and
b
in accordance with generally accepted accounting practice, the company treats rights and liabilities under the contract as divided between —
i
rights and liabilities under one or more derivatives (“embedded derivatives”), and
ii
the remaining rights and liabilities (the “non-financial host contract”).
2
The company is to be treated for the purposes of this Schedule as —
a
party to a relevant contract (a “non-financial embedded derivative”) whose rights and liabilities consist only of the embedded derivative, or
b
if there is more than one embedded derivative, party to relevant contracts each of whose rights and liabilities consist only of one of the non-financial embedded derivatives.
3
Each relevant contract to which the company is treated as party under sub-paragraph (2) is to be treated as an option, a future, or a contract for differences according to whether the rights and liabilities of the embedded derivative would be of that character if contained in a separate contract.
Hybrid derivatives
2B
1
This paragraph applies where —
a
a company is party to a relevant contract which satisfies the conditions in paragraph (b) or (c) of paragraph 3(1) (a “hybrid derivative”),
b
in accordance with generally accepted accounting practice, the company treats rights and liabilities under the contract as divided between —
i
rights and liabilities under one or more derivatives (“embedded derivatives”), and
ii
the remaining rights and liabilities (the “host contract”), and
c
a contract consisting of only those remaining rights and liabilities would be a relevant contract.
2
The company is to be treated for the purposes of this Schedule as —
a
party to a relevant contract whose rights and liabilities consist only of the embedded derivative, or (if there is more than one derivative), party to relevant contracts each of whose rights and liabilities consist only of one of the embedded derivatives, and
b
party to a relevant contract whose rights and liabilities are those of the host contract.
3
Each relevant contract to which the company is treated as party under sub-paragraph (2)(a) (a “nested derivative”) or (2)(b) (a “quasi-derivative host contract”) is to be treated as an option, a future, or a contract for differences according to whether the rights and liabilities of the embedded derivative or host contract would be of that character if contained in a separate contract.
.
Amendment of paragraph 3 of Schedule 26
5
1
Amend paragraph 3 (contracts to satisfy accounting requirements etc. ) as follows.
2
In sub-paragraph (1)(a) omit “financial instrument”.
3
In sub-paragraph (2)(b)(iv) for “and” substitute “or”.
4
In sub-paragraph (3) omit “financial instrument”.
5
In sub-paragraph (5) —
a
omit paragraph (a),
b
in paragraph (aa) omit “by the company”, and
c
in paragraph (b) —
i
omit “by the company”, and
ii
for “derivative financial instruments” substitute “derivatives”.
Amendment of paragraph 4 of Schedule 26
6
1
Amend paragraph 4 (contracts excluded by virtue of their underlying subject matter) as follows.
2
In sub-paragraph (2)(b) after “(2C)” insert “, (2CA)”.
3
For sub-paragraph (2A) substitute —
2A
The conditions specified in this sub-paragraph are that the relevant contract —
a
is a plain vanilla contract entered into by a company carrying on life assurance business;
b
is an approved derivative for the purposes of Rule 4.3.5 of the Integrated Prudential Sourcebook; and
c
does not fall within paragraph 3(1)(b).
.
4
In sub-paragraph (2B) —
a
in paragraph (b)(ii) after “of the company” insert “or any liability related to share capital of the company”, and
b
in paragraph (c) for the words from “a deemed relevant contract" to the end substitute “a loan-contract embedded derivative.”
5
After sub-paragraph (2C) insert —
2CA
The conditions specified in this sub-paragraph are —
a
the relevant contract is entered into or acquired —
i
by a company otherwise than in the course of activities forming an integral part of a trade carried on by it, or
ii
by a company which is a mutual trading company;
b
the relevant contract is —
i
an option to acquire shares in a company, or
ii
a future requiring delivery of shares in a company;
c
the relevant contract is not a loan-contract embedded derivative; and
d
the shares to be acquired or delivered constitute, or would (if acquired or delivered) constitute a substantial shareholding within the meaning of paragraph 8 of Schedule 7AC to TCGA 1992 .
.
Substitution of paragraph 4C of Schedule 26
7
For paragraph 4C substitute —
Treatment of credits and debits on former chargeable asset
4D
1
This paragraph applies if —
a
a company is party to a plain vanilla contract which (not having been a derivative contract) became a derivative contract before 30th December 2006,
b
the company disposes of the derivative contract by ceasing to be a party to it, and
c
paragraphs 4A and 4B do not apply in relation to the contract.
2
For the purposes of computing any chargeable gain accruing to the company on the disposal —
a
paragraph 1(2) does not apply; and
b
the sums allowable as a deduction under section 38(1)(a) of TCGA 1992 (acquisition costs) shall —
i
if G exceeds L, be increased by the amount of that excess, and
ii
if L exceeds G, be reduced by the amount of that excess.
3
If the amount of the excess in sub-paragraph (2)(b)(ii) is greater than the amount of expenditure allowable under section 38(1)(a) of TCGA 1992, the amount of the excess that cannot be deducted from the expenditure shall, for the purpose mentioned in sub-paragraph (2), be added to the amount of the consideration for the disposal.
4
In this paragraph —
G is the sum of the credits brought into account under paragraph 14(3) in respect of the derivative contract in each relevant accounting period, and
L is the sum of the debits brought into account under paragraph 14(3) in respect of the derivative contract in each relevant accounting period.
5
For the purposes of sub-paragraph (4) a “relevant accounting period” is —
a
the accounting period in which the disposal is made, or
b
any previous accounting period.
.
Amendment of paragraph 9 of Schedule 26
8
1
Amend paragraph 9 (underlying subject matter which is subordinate or of small value disregarded) as follows.
2
In sub-paragraph (1) omit “or (4)”.
3
Omit sub-paragraph (4).
4
In sub-paragraph (5) —
a
in paragraph (a) omit “or”, and
b
omit paragraph (c).
Amendment of paragraph 12 of Schedule 26
9
1
Amend paragraph 12 (definition of terms relating to derivative contracts) as follows.
2
For sub-paragraph (1) substitute —
1
This paragraph defines the following expressions for the purposes of this Schedule —
a capital redemption policy (see sub-paragraph (2));
a contract for differences (see sub-paragraphs (3) to (5));
a depositary receipt (in relation to shares) (see sub-paragraph (17));
designated (see sub-paragraph (13));
a future (see sub-paragraphs (6), (7) and (10));
a hedging relationship between a relevant contract and an asset or liability, in the case of any company (see sub-paragraph (14));
intangible fixed assets (see sub-paragraph (11));
Integrated Prudential Sourcebook (see sub-paragraph (15));
loan-contract embedded derivative (see sub-paragraph (11A));
loan-contract host contract (see sub-paragraph (11B));
long-term insurance fund (see sub-paragraph (16));
an option (see sub-paragraphs (8) and (10));
original asset (see sub-paragraph (11C));
original creditor relationship (see sub-paragraph (11D));
shares in a company (see sub-paragraph (12));
a warrant (see sub-paragraph (9))..
.
3
After sub-paragraph (11) insert —
11A
”Loan-contract embedded derivative” means a contract to which a company is treated as party by virtue of section 94A(2)(b) of the Finance Act 1996.
11B
”Loan-contract host contract” means a loan relationship to which a company is treated as party by virtue of section 94A(2)(a) of the Finance Act 1996.
11C
”Original asset” means an asset representing an original creditor relationship.
11D
”Original creditor relationship” means a loan relationship to which —
a
a company is creditor, and
b
section 94A of the Finance Act 1996 applies.
.
4
In sub-paragraph (13) before “has the same meaning” insert “, except in paragraph 45G,”.
5
In sub-paragraph (14) for paragraph (b) substitute —
b
in any other case —
i
the hedging instrument is intended to act as a hedge of the exposure to changes in fair value of the hedged item that is attributable to a particular risk and could affect the profit or loss of the company, and
ii
the hedged item is an asset or liability recognised for accountancy purposes or is an identified portion of such an asset or liability.
.
6
In sub-paragraph (16) for “and “contract of long-term insurance” have” substitute “has”.
Amendment of Part 9 of Schedule 26
Substitution of paragraphs 44 and 45 of Schedule 26
10
For paragraphs 44 and 45 substitute —
Contracts which become derivative contracts
43A
1
This paragraph applies if —
a
a company is a party to a relevant contract which (having not been a derivative contract) becomes a derivative contract, and
b
immediately before the time at which the relevant contract becomes a derivative contract, the relevant contract is a chargeable asset.
2
The company shall, when it ceases to be a party to the relevant contract, bring into account (for the accounting period in which it ceases to be party to the relevant contract) the amount of any chargeable gain or allowable loss treated as accruing to the company on the assumption —
a
that it had made a disposal of the relevant contract immediately before the relevant time, and
b
that the disposal had been for a consideration equal to the notional carrying value of the relevant contract at that time.
3
For the purposes of this paragraph an asset is a chargeable asset if any gain accruing on the disposal of the asset by the company would be a chargeable gain for the purposes of TCGA 1992 (and includes any obligations under futures contracts which, by virtue of section 143 of that Act, are regarded as assets to the disposal of which that Act applies).
4
For the purposes of this paragraph “the relevant time” means the time, on or after 30th December 2006, at which the relevant contract becomes a derivative contract.
5
For the purposes of this paragraph the “notional carrying value” of a contract at any time is the amount which would have been the carrying value of the contract in the accounts of the company if an accounting period had ended immediately before that time.
Contracts which cease to be derivative contracts
43B
1
This paragraph applies if a company is party to a relevant contract which (having been a derivative contract) ceases to be a derivative contract.
2
The company is to be treated —
a
for the purposes of this Schedule, as if at the relevant time it had disposed of the contract in a related transaction for a consideration of an amount equal to the notional carrying value of the contract at that time, and
b
for the purposes of TCGA 1992, as if immediately after that time it had reacquired the contract for the same consideration.
3
In this paragraph “the relevant time” means the time at which the contract ceases to be a derivative contract.
4
Paragraph 43A(5) (meaning of “notional carrying value”) applies for the purposes of this paragraph.
.
Omission of paragraphs 44 and 45 of Schedule 26
11
Omit paragraphs 44 and 45.
Amendment of paragraph 45C of Schedule 26
12
In paragraph 45C (derivative contracts relating to land or certain tangible movable property) omit sub-paragraphs (1)(d) and (1A).
Amendment of paragraph 45D of Schedule 26
13
1
Amend paragraph 45D (creditor relationships: embedded derivatives which are options) as follows.
2
In sub-paragraph (1) for paragraphs (a) to (c) substitute —
a
the derivative contract is a loan-contract embedded derivative to which the company is treated as party by virtue of a creditor relationship of the company (“the original relationship”),
b
the derivative contract is treated as an option by virtue of section 94A(3) of the Finance Act 1996,
.
3
In sub-paragraph (2)(a) for “creditor relationship” substitute “original relationship”.
4
For sub-paragraph (2)(f) substitute —
f
the original asset is not an existing asset.
.
5
In sub-paragraph (3)(a) for “creditor relationship” substitute “original relationship”.
6
In sub-paragraph (3A) for “paragraph” substitute “Schedule and Chapter 2 of Part 4 of the Finance Act 1996”.
7
In sub-paragraph (8) for “creditor relationship” substitute “original relationship”.
Amendment of paragraph 45E of Schedule 26
14
In paragraph 45E (exclusions from paragraph 45D) omit sub-paragraph (2).
Amendment of paragraph 45F of Schedule 26
15
1
Amend paragraph 45F (creditor relationships: embedded derivatives which are exactly tracking contracts for differences) as follows.
2
In sub-paragraph (1) for paragraphs (a) to (c) substitute —
a
the derivative contract is a loan-contract embedded derivative to which the company is treated as party by virtue of a creditor relationship of the company (“the original relationship”),
c
the derivative contract is treated as a contract for differences by virtue of section 94A(3) of the Finance Act 1996,
.
3
In sub-paragraph (2)(a) for “creditor relationship” substitute “original relationship”.
4
In sub-paragraph (2)(c) omit sub-paragraph (i).
5
For sub-paragraph (2)(f) substitute —
f
the original asset is not an existing asset.
.
6
In sub-paragraph (3)(a) for “creditor relationship” substitute “original relationship”.
7
In sub-paragraph (4), in the definition of “C”, for “the asset which represents the creditor relationship” substitute “the original asset”.
8
In sub-paragraph (6) —
a
in paragraph (a)(i) for “the asset representing the creditor relationship” substitute “the original asset”
b
in paragraph (a)(ii) for “corresponding debtor relationship” substitute “debtor relationship corresponding to the creditor relationship mentioned in sub-paragraph (1)”, and.
c
in paragraph (b) for “the asset representing the creditor relationship” substitute “the original asset”.
9
In sub-paragraph (8) for “creditor relationship” substitute “original relationship”.
Amendment of paragraph 45FA of Schedule 26
16
For paragraph 45FA (creditor relationships: existing assets) substitute —
Creditor relationships: existing assets
45FA
1
This paragraph applies if paragraph 45D or 45F would apply to a derivative contract for an accounting period but for sub-paragraph (2)(f) of that paragraph.
2
Paragraph 14(3) (non-trading debits and credits) shall not apply to the credits and debits given in relation to the contract for the accounting period by paragraph 15.
3
The original creditor relationship by virtue of which paragraph 45D or 45F would apply to the derivative contract shall not be treated as a qualifying corporate bond by virtue of section 117(A1) of TCGA 1992.
4
For the purposes of TCGA 1992 the amount or value of the consideration for any disposal of the original asset shall be treated as adjusted so as to exclude so much of it as, on a just and reasonable apportionment, relates to any interest which —
a
falls to be brought into account under Chapter 2 of Part 4 of the Finance Act 1996 (loan relationships) as accruing to any company at any time; and
b
in consequence of, or of the terms of, the disposal, is not paid or payable to the company to which it is treated for the purposes of that Chapter as accruing.
5
Where —
a
there has been a reorganisation for the purposes of sections 126 to 132 of TCGA 1992, and
b
for the purposes of those sections, the original asset mentioned in sub-paragraph (4) is treated as the original shares,
the reference in sub-paragraph (4) to the disposal of the original asset includes a reference to the disposal of the asset which, as a result of the reorganisation, has become the new holding for the purposes of those sections.
6
For the purposes of TCGA 1992 the amount or value of the consideration for any disposal by a company of the original asset —
a
shall be increased by the addition of any relevant exchange losses, and
b
shall (after giving effect to any such increase) be reduced (but not below nil) by the deduction of any relevant exchange gains,
but this sub-paragraph does not apply in a case where paragraph 45F would apply but for sub-paragraph (2)(f) of that paragraph.
7
For the purposes of sub-paragraph (6), “relevant exchange gains” and “relevant exchange losses” are —
a
the amount of any exchange gains or losses in respect of the original asset that are brought into account under Chapter 2 of Part 4 of the Finance Act 1996 by the company for an accounting period throughout which the company holds the original asset; and
b
for any accounting period not falling within paragraph (a) in which the company holds the original asset, an amount which, on a just and reasonable apportionment, represents so much of the amount of any exchange gains or losses brought into account under that Chapter in respect of the original asset, by the company making the disposal, for that period as is referable to the part of the period for which the company holds the asset.
8
Where the amount of the relevant exchange gains falling to be deducted under sub-paragraph (6)(b) exceeds the amount required to reduce the amount or value of the consideration to nil, the excess shall be treated for the purposes of section 38(1)(c) of TCGA 1992 as incidental costs of making the disposal of the original asset.
.
Amendment of paragraph 45H of Schedule 26
17
1
Amend paragraph 45H as follows.
2
In sub-paragraph (2) for paragraph (a) substitute —
a
sub-paragraph (3) has effect in relation to a disposal of the asset representing the original creditor relationship mentioned in paragraph 45D(1)(a) (“the original relationship”), and
.
3
In sub-paragraph (3) for “asset representing the associated creditor relationship” substitute “original asset”.
4
After sub-paragraph (5) insert —
5A
Sections 37 and 39 of TCGA 1992 do not apply in relation to a disposal mentioned in sub-paragraph (1)(b), (2)(a) or (b) above.
5
In sub-paragraph (6), in the definition of “G”, for paragraph (a) substitute —
a
the relevant Chapter 2 amount, and
.
6
In sub-paragraph (7) for paragraph (a) substitute —
a
the “relevant Chapter 2 amount” means the amount by which the carrying value of the loan-contract host contract at the date on which the option is exercised exceeds the carrying value of that contract at —
i
the date on which the company became party to the original relationship, or
ii
(if later) the date on which the derivative contract became one to which paragraph 45D applies;
.
Insertion of paragraph 45HZA of Schedule 26
18
After paragraph 45H insert —
Treatment of net gains and losses on disposal of certain embedded derivatives
45HZA
1
This paragraph applies where —
a
a derivative contract is one to which paragraph 45F (creditor relationships: embedded derivatives which are exactly tracking contracts for differences) applies for an accounting period, and
b
the asset representing the original relationship mentioned in paragraph 45F(1)(a) is disposed of in the accounting period.
2
For the purpose of computing any chargeable gain accruing to the company on the disposal, the sums allowable as a deduction under section 38(1)(a) of TCGA 1992 (acquisition costs) shall —
a
if G exceeds L, be increased by the amount of that excess,
b
if L exceeds G, be reduced by the amount of that excess.
3
If the amount of the excess in sub-paragraph (2)(b) is greater than the amount of expenditure allowable under section 38(1)(a) of TCGA 1992, the amount of the excess that cannot be deducted from the expenditure so allowable shall, for the purpose mentioned in sub-paragraph (2), be added to the amount of the consideration for the disposal.
4
Sections 37 and 39 of TCGA 1992 do not apply in relation to the disposal.
5
In this paragraph —
G is the sum of —
the relevant Chapter 2 amount, and
the amount of any chargeable gains treated as accruing to the company under paragraph 45A(4)(a) in respect of the derivative contract in each relevant accounting period, and
L is the sum of the amounts of any allowable losses treated as accruing to the company under paragraph 45A(4)(b) in respect of the derivative contract in each relevant accounting period.
6
For the purposes of paragraph (5) —
a
the relevant Chapter 2 amount means the amount by which the carrying value of the loan-contract host contract at the date of the disposal exceeds the carrying value of that contract at the date on which the company became party to the original relationship;
b
a relevant accounting period is —
i
the accounting period in which the disposal is made, or
ii
any previous accounting period.
.
Amendment of paragraph 45HA of Schedule 26
19
1
Amend paragraph 45HA as follows.
2
For sub-paragraph (1) and the heading preceding paragraph 45HA substitute —
Treatment of credits and debits on terminal exercise of non-embedded option or running to delivery of future
45HA
1
This paragraph applies where —
a
a company is party to a derivative contract in an accounting period,
b
the derivative contract is a plain vanilla contract which is an option,
c
rights comprised in the plain vanilla contract are exercised to any extent in that accounting period, and
d
those rights are rights to acquire shares.
1A
This paragraph also applies where —
a
a company is party to a derivative contract in an accounting period,
b
the derivative contract is a plain vanilla contract which is a future,
c
delivery is taken of an asset in accordance with the terms of the future, and
d
that asset is shares.
.
3
In sub-paragraph (2) —
a
for “In any such case” substitute “Where this paragraph applies”, and
b
for “so acquired” substitute “acquired or delivered”.
4
In sub-paragraph (4), in the definition of “G”, for “sub-paragraph (1)(b)” substitute “sub-paragraph (1)(c) or the delivery mentioned in sub-paragraph (1A)(c)”.
Amendment of paragraph 45I of Schedule 26
20
1
Amend paragraph 45I (index-linked gilt-edged securities with embedded contracts for differences) as follows.
2
In sub-paragraph (1) for paragraph (a) substitute —
a
the derivative contract is a loan-contract embedded derivative to which the company is treated as party by virtue of a creditor relationship of the company,
.
3
In sub-paragraph (1)(c) for “equivalent deemed loan relationship” substitute “loan-contract host contract”.
4
In sub-paragraph (1) omit paragraph (d).
5
In sub-paragraph (1)(e) for the words from the beginning to “that section” substitute “the derivative contract is treated by virtue of section 94A(3) of the Finance Act 1996”.
6
In sub-paragraph (3) omit the definition of “the equivalent deemed loan relationship”.
Amendment of paragraph 45J of Schedule 26
21
1
Amend paragraph 45J (issuers of securities with embedded derivatives: deemed options) as follows.
2
In sub-paragraph (1) for paragraphs (a) and (b) substitute —
a
the derivative contract is a loan-contract embedded derivative to which the company is treated as party by virtue of a debtor relationship of the company (“the original relationship”),
.
3
In sub-paragraph (1)(c) for the words from the beginning to “that section” substitute “the derivative contract is treated by virtue of section 94A(3) of the Finance Act 1996”.
4
In sub-paragraph (2)(a), in both places, and in sub-paragraph (4) for “debtor” substitute “original”.
5
In sub-paragraph (3)(b) for “(9)” substitute “(9A)”.
6
For sub-paragraphs (8) and (9) substitute —
8
In sub-paragraph (7) —
E is —
in a case where the company was a party to the original relationship at the time it was created, the initial carrying value of the option, and
in a case where the company became a party to the original relationship at a later time, the carrying value of the option at that time;
F is the amount paid by the debtor in fulfilment of the obligations under the original relationship reduced (but not below nil) by the fair value of the loan-contract host contract at the date on which the option is exercised.
9
Sub-paragraph (9A) applies if the company ceases to be a party to the original relationship at a time when the option mentioned in sub-paragraph (1)(c) has not been exercised.
9A
The company is treated for the purposes of corporation tax on chargeable gains —
a
as having disposed of an asset for a consideration equal to G, and
b
as having acquired that asset for a consideration equal to H.
9B
In sub-paragraph (9A) —
G is —
in a case where the company was a party to the original relationship at the time it was created, the initial carrying value of the option, and
in a case where the company became a party to the original relationship at a later time, the carrying value of the option at that time;
H is —
in a case where the company ceases to be a party to the original relationship as a result of the redemption or repayment of the liability representing the original relationship, the amount paid by the company, and
in any other case, the consideration given by the company on its ceasing to be party to the original relationship,
in either case reduced (but not below nil) by the fair value of the loan-contract host contract at the date on which it so ceases.
.
Amendment of paragraph 45JA of Schedule 26
22
1
Amend paragraph 45JA (issuers of securities with embedded derivatives: equity instruments) as follows.
2
In sub-paragraph (1) —
a
for paragraph (a) substitute —
a
the company is party to a loan-contract embedded derivative by virtue of a debtor relationship of the company (“the original relationship”)
,
b
in paragraph (b) for “subsection (1) of that section in the case of that debtor relationship” substitute “section 94A(1) of the Finance Act 1996 in the case of the original relationship”, and
c
in paragraph (b)(ii), at the end, insert “of the company”.
3
Omit sub-paragraph (1)(e).
4
In sub-paragraph (1)(f) for “loan” substitute “original”.
5
In sub-paragraphs (2)(a), in both places, and (2)(b) for “debtor” substitute “original”.
6
In sub-paragraph (4) for the definition of “RA” substitute —
RA is the amount paid as mentioned in sub-paragraph (1)(f) reduced (but not below nil) by an amount equal to the fair value of the loan-contract host contract at the time that amount is paid;
.
7
In sub-paragraph (4), in the definition of “E”, for “debtor” substitute “original”.
Amendment of paragraph 45K of Schedule 26
23
1
Amend paragraph 45K (issuers of securities with embedded derivatives: deemed contracts for differences) as follows.
2
In sub-paragraph (1) —
a
For paragraphs (a) and (b) substitute —
a
the derivative contract is a loan-contract embedded derivative to which the company is treated as party by virtue of a debtor relationship of the company (“the original relationship”),
.
3
For sub-paragraph (1)(d) substitute —
d
the derivative contract is an exactly tracking contract within the meaning of sub-paragraph (2A), and
.
4
In sub-paragraphs (2)(a), in both places, and (2)(e) for “debtor” substitute “original”.
5
In sub-paragraph (2)(c) omit “land (wherever situated) or”.
6
After sub-paragraph (2) insert —
2A
For the purposes of this paragraph “an exactly tracking contract” is a contract for differences where D is equal to the amount determined by applying R% to C where —
D is the amount that must be paid to discharge the rights and liabilities that fall to be treated as comprised in the contract;
R% is a relevant percentage change in the value of the underlying subject matter of the contract (see sub-paragraph (2B));
C is the amount falling for the purposes of Chapter 2 of Part 4 of the Finance Act 1996 to be regarded in accordance with generally accepted accounting practice as the proceeds of issue of the liability which represents the original relationship.
2B
In sub-paragraph (2A), the reference to a relevant percentage change in the value of the underlying subject matter of the contract is a reference to the percentage change (if any) over the relevant period in —
a
the value of the assets which are the underlying subject matter of the contract, or
b
any index of the value of those assets.
2C
In sub-paragraph (2B) “the relevant period” means —
a
the period between —
i
the date when the liability representing the original relationship came into existence, and
ii
the date when the corresponding creditor relationship comes to an end; or
b
any other period in which almost all of that period is comprised, and which differs from that period exclusively for purposes connected with giving effect to a valuation in relation to rights or liabilities under the liability representing the original relationship.
.
7
In sub-paragraphs (3A)(a) and (3B)(b) for “debtor” substitute “original”.
8
In sub-paragraph (3B) for paragraph (c) substitute —
c
the consideration for the disposal of that asset —
i
in a case where the company was party to the original relationship at the time it was created, is equal to the amount of the proceeds of issue of the security representing that relationship, and
ii
in a case where the company became party to the original relationship after that time, is equal to the amount of the carrying value of the loan-contract host contract at that time, and
.
Insertion of paragraph 45KA of Schedule 26
24
After paragraph 45K insert —
Securities with embedded options: existing liabilities
45KA
1
Where in any accounting period paragraph 45K would apply to a derivative contract but for sub-paragraph (2)(e) of that paragraph, paragraph 14(3) (non-trading credits and debits) shall not apply to the relevant credits and debits.
2
For the purposes of this paragraph the relevant credits and debits are the credits and debits given in relation to the contract for the accounting period by paragraph 15.
.
Amendment of paragraph 45L of Schedule 26
25
1
Amend paragraph 45L (derivatives not embedded in a loan relationship) as follows.
2
In sub-paragraph (1) for the words from the beginning to the end of paragraph (a) substitute —
1
This paragraph applies where —
a
a company is party to a non-financial embedded derivative or a nested derivative (“the contract”),
.
3
For sub-paragraph (1A) substitute —
1A
In this paragraph “the original contract” means —
a
the non-financial contract mentioned in paragraph 2A to which the company is party, and as a result of which the company falls to be treated under paragraph 2A(2) as party to the non-financial embedded derivative; or
b
the hybrid derivative mentioned in paragraph 2B to which the company is party, and as a result of which the company falls to be treated under paragraph 2B(2) as party to the nested derivative.
.
4
In sub-paragraph (1B)(b) for the words from “whether” to the end substitute “whether that contract is a hybrid derivative or a non-financial contract”.
5
In sub-paragraph (1C) —
a
for “a derivative contract” substitute “a hybrid derivative”, and
b
for paragraph (a) substitute —
a
were not one where the rights and liabilities are treated for accounting purposes as divided as mentioned in sub-paragraph (2) of paragraph 2B, and
.
6
In sub-paragraph (2) —
a
for the words from the beginning to “a derivative contract” substitute “If the contract is a non-financial contract”,
b
for paragraph (a) substitute —
a
were not one where the rights and liabilities are treated for accounting purposes as divided as mentioned in sub-paragraph (2) of paragraph 2A, and
, and
c
insert the following words after paragraph (b) (but not as part of that paragraph) —
and, accordingly, this Schedule shall not apply to the contract, but section 42 of the Finance Act 1998 shall apply to the contract as if fair value accounting were not generally accepted accounting practice in relation to the company.
.
Amendment of paragraph 45LA of Schedule 26
26
In paragraph 45LA (elections under paragraph 45L(2A): further provisions) in sub-paragraph (4)(a) for “paragraph 2(4)” substitute “paragraph 2A or 2B”.
Amendment of paragraph 45M of Schedule 26
27
1
Amend paragraph 45M (treatment of host contract as a loan relationship) as follows.
2
For sub-paragraphs (1) and (2) substitute —
1
This paragraph applies where for an accounting period —
a
a company is party to a hybrid derivative contract falling within paragraph 3(1)(b),
b
the nested derivative is a derivative contract falling within paragraph 3(1)(a),
c
the underlying subject matter of the derivative contract consists, or is treated as consisting, wholly of —
i
shares in a company, or
ii
rights of a unit holder under a unit trust scheme, and
d
the quasi-derivative host contract is treated for accounting purposes as, or as forming part of, a financial asset.
2
Where this paragraph applies —
a
the quasi-derivative host contract shall be treated for the purposes of the Corporation Tax Acts as if it were a creditor relationship of the company, and
b
the nested derivative shall be treated —
i
as satisfying the conditions in paragraph 4(2A), and
ii
as a chargeable asset (within the meaning of paragraph 4A(4)).
.
3
Omit sub-paragraphs (5) and (6).
Amendment of paragraph 50A of Schedule 26
28
In paragraph 50A (adjustment on company changing to international accounting standards), in sub-paragraph (3B)(b), for “paragraphs 21 and 28” substitute “paragraph 28”.
Consequential amendments
Amendment of paragraph 54 of Schedule 26
29
1
Amend paragraph 54(1) (interpretation of expressions) as follows.
2
Insert at the appropriate places the following definitions —
“carrying value”, in relation to a contract, shall be construed in accordance with sub-paragraphs (3A) and (3B) of paragraph 50A;
“hybrid derivative” shall be construed in accordance with paragraph 2B;
“nested derivative” shall be construed in accordance with paragraph 2B(1)(b)(i);
“plain vanilla contract” shall be construed in accordance with paragraph 2(2B);
“quasi-derivative host contract” shall be construed in accordance with paragraph 2B(1)(b)(ii);
“TCGA 1992” means the Taxation of Chargeable Gains Act 1992.
.
3
Omit the definition of “embedded derivative contract” .
Amendment of references to the Taxation of Chargeable Gains Act 1992
30
1
In the specified provisions of Schedule 26, for “the Taxation of Chargeable Gains Act 1992” substitute “TCGA 1992”.
2
In paragraph (1) “the specified provisions” means paragraph 4A(4), paragraph 45A(6), paragraph 45B(8), sub-paragraphs (7) and (8) of paragraph 45D, paragraph 45F(8), sub-paragraphs (2)(b)(ii), (3), (4) and (5) of paragraph 45H, sub-paragraphs (2) and (3) of paragraph 45HA, paragraph 45J(5)(a) and paragraph 45LA(6).
Dave Watts
Frank Roy
Two of the Lords Commissioners of Her Majesty’s Treasury
7th December 2006