# The Inheritance Tax (Market Makers and Discount Houses) Regulations 2012 S.I. 2012/2903 · made 19 November 2012 · revised to 31 December 2020 These Regulations amend the Inheritance Tax Act 1984 (“the Act”) to apply Business Property Relief to any property if the business concerned is a market maker anywhere within the European Economic Area. PDFs: Printed copy https://openlegislation.uk/inheritance-tax-market-makers-and-discount-houses-regulations-2012/pdf/uksi_20122903_en.pdf; Explanatory Memorandum https://openlegislation.uk/inheritance-tax-market-makers-and-discount-houses-regulations-2012/pdf/uksiem_20122903_en.pdf ## Introductory text Inheritance Tax Made 19th November 2012 Laid before the House of Commons 21st November 2012 Coming into force 31st December 2012 The Commissioners for Her Majesty's Revenue and Customs make the following Regulations in exercise of powers conferred by sections 106(5) and 107(5) of the Finance Act 1986 and now exercisable by them . ## 1 Citation and commencement These Regulations may be cited as the Inheritance Tax (Market Makers and Discount Houses) Regulations 2012 and come into force on 31st December 2012. ## 2 Application of these Regulations The day specified for the purposes of sections 106(6) and 107(6) of the Finance Act 1986 for the application of these Regulations is 31st December 2012. ## 3 Amendment of the Inheritance Tax Act 1984 The Inheritance Tax Act 1984 is amended as follows. ## 4 In section 105 (relevant business property), after subsection (4) insert— “(4A) Subsection (3) above also does not apply to any property if the business concerned is of a description set out in regulations under section 106(5) of the Finance Act 1986.”. ## 5 In section 234 (interest on instalments), for subsection (3)(c) substitute— “(c) any company— (i) whose business is wholly that of a market maker or is that of a discount house and (in either case) is carried on in the United Kingdom, or (ii) which is of a description set out in regulations under section 107(5) of the Finance Act 1986.”. ## 6 Description for the purposes of sections 105(4A) and 234(3)(c)(ii) of the Inheritance Tax Act 1984 For the purposes of section 105(4A) of the Inheritance Tax Act 1984 the description of a business is a business in an EEA State ... which— (a) holds itself out at all normal times, in compliance with the rules of a regulated market ..., as willing to buy and sell securities, stocks and shares at a price specified by it, and (b) is recognised as doing so by that regulated market. ## 7 For the purposes of section 234(3)(c)(ii) of the Inheritance Tax Act 1984 the description of a company is a company in an EEA State ... which— (a) holds itself out at all normal times, in compliance with the rules of a regulated market ..., as willing to buy and sell securities, stocks and shares at a price specified by it, and (b) is recognised as doing so by that regulated market. ## 8 In these Regulations “regulated market” means— (a) a UK regulated market within the meaning given by Article 2.1(13A) of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments, (b) an EU regulated market within the meaning given by Article 2.1(13B) of that Regulation, and (c) a Gibraltar regulated market within the meaning given by Article 26(11)(b)(i) of that Regulation. ## Signature Ruth Owen Jim Harra Two of Her Majesty's Commissioners for Revenue and Customs ## Explanatory note (This note is not part of the Regulations) These Regulations amend the Inheritance Tax Act 1984 (“the Act”) to apply Business Property Relief to any property if the business concerned is a market maker anywhere within the European Economic Area. Regulation 4 amends section 105 of the Act to insert subsection (4A). The new subsection provides that subsection (3) also does not apply to businesses which are of a description set out in regulations made under section 106(5) of the Finance Act 1986 (“the 1986 Act”). Regulation 6 describes, for the purposes of sections 105(4A) of the Act, those businesses. Regulation 5 amends section 234 of the Act to substitute subsection (3)(c) to include a provision that companies which are of a description set out in regulations made under section 107(5) of the 1986 Act fall within section 234(3)(c). This is in order to mirror the changes made by regulation 4 to ensure the treatment of companies in relation to the interest payable on instalments is the same as the relief. Regulation 7 describes, for the purposes of section 234(3)(c)(ii) of the Act, those companies. A Tax Information and Impact Note covering this instrument was published on 4th October 2012 alongside the draft legislation and is available on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm. It remains an accurate summary of the impacts that apply to this instrument. --- Source: https://www.legislation.gov.uk/uksi/2012/2903 (the official version) Page: https://openlegislation.uk/inheritance-tax-market-makers-and-discount-houses-regulations-2012 Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.