Regulation 31 Employer’s contributions

Regulation P12 is amended by inserting after paragraph (4) the following paragraphs:–

“(5)

The following provisions apply for the purpose of determining the base rate referred to in paragraph (3)–

(a)

“the base rate” means the base rate for the time being quoted by the reference banks or, where there is for the time being more than one such base rate, the rate which, when the base rate quoted by each bank is ranked in a descending sequence of seven, is fourth in the sequence at that time;

(b)

the reference banks are the seven largest institutions–

(i)

authorised by the Bank of England under the Banking Act 1987^f1,

(ii)

incorporated in and carrying on a deposit-taking business within the United Kingdom, and

(iii)

which quote a base rate in sterling;

(c)

the size of an institution is to be determined by reference to its total consolidated gross assets denominated in sterling, as shown in its audited end-year accounts last published before that time;

(d)

a “deposit-taking business” has the meaning given to it in section 6 of the Banking Act 1987 but subject to any order under section 7 of that Act.

(6)

In paragraph (5)(c), the reference to the “consolidated gross assets” of an institution is a reference to the gross assets of that institution together with any subsidiary (within the meaning of section 736 of the Companies Act 1985^f2).”.