# The Personal Portfolio Bonds (Tax) (Amendment) Regulations 2001

S.I. 2001/2724 · made 27 July 2001

These Regulations amend the Personal Portfolio Bonds (Tax) Regulations 1999 (S.I. 1999/1029).

Made under: Income and Corporation Taxes Act 1988 (Section 553C)

PDFs: Printed copy https://openlegislation.uk/personal-portfolio-bonds-tax-amendment-regulations-2001/pdf/uksi_20012724_en.pdf

## Introductory text

TAXES
Made 27th July 2001
Laid before the House of Commons 27th July 2001
Coming into force 17th August 2001
The Treasury, in exercise of the powers conferred upon them by section 553C of the Income and Corporation Taxes Act 1988 hereby make the following Regulations:

## 1 Citation, commencement and effect

These Regulations may be cited as the Personal Portfolio Bonds (Tax) (Amendment) Regulations 2001 and shall come into force on 17th August 2001 and have effect as respects gains treated as arising on or after that day.

## 2 Amendment of the Personal Portfolio Bonds (Tax) Regulations 1999

Amend the Personal Portfolio Bonds (Tax) Regulations 1999 as follows.

## 3 Amendment of the Personal Portfolio Bonds (Tax) Regulations 1999

(1) Amend regulation 5 (personal portfolio bonds—computation of gain) in accordance with the following provisions of this regulation.
(2) For paragraph (2) substitute—
“(2) There shall be treated as a gain arising in a relevant year the amount calculated in accordance with the formula—
0.15×(A+B-C) Here—
A is the amount of the premium paid in respect of the personal portfolio bond;
B is the sum of the amounts found by applying the formula at the end of each of the previous years during which the personal portfolio bond was in existence in succession starting with the first such year; and
C is the amount calculated in accordance with the formula in paragraph (2A).
(2A) C is the amount calculated in accordance with the formula—
R-G a at the end of the year immediately preceding the relevant year if the calculation produces an excess; and
b at the end of any earlier year during the existence of the bond when the calculation produces an excess; and
c adding together all the amounts produced by sub-paragraphs (a) and (b).
Here—
R is the reckonable aggregate value mentioned in section 546(2); and
G is the allowable aggregate amount referred to in section 546(3).
(2B) For the purposes of the computation of C—
(a) section 546(1)(a) shall be read as if the words “or assignment” and “assigned for money or money’s worth, or” and sub-paragraph (ii) and the word “; or” preceding it were omitted;
(b) section 546(6) shall be disregarded; and
(c) sections 546B to 546D shall be disregarded.”.
(3) In paragraph (3) for “concerned, subject to paragraph (4)” substitute—
“concerned.
This is subject to paragraphs (4) and (4A).”.
(4) After paragraph (4) insert—
“(4A) For the purposes of paragraphs (2) to (3), any gain treated as arising under section 546C shall be treated as arising immediately after the gain calculated in accordance with paragraph (2).”.

## 4 Amendment of the Personal Portfolio Bonds (Tax) Regulations 1999

(1) Amend regulation 6 as follows.
(2) In paragraph (3)—
(a) in sub-paragraph (a) for “545” substitute “545 or 546C”; and
(b) in sub-paragraph (b) for “543” substitute “543 or 546C(7)(b)”.
(3) In paragraph (8)—
(a) in sub-paragraph (a) for “541” substitute “541 or 546C(7)(b)”; and
(b) in sub-paragraph (b) for “545” substitute “545 or 546C(7)(a)”.

## Signature

Tony McNulty
John Heppell
Two of the Lords Commissioners of Her Majesty’s Treasury
27th July 2001

## Explanatory note

(This note is not part of the Regulations)
These Regulations amend the Personal Portfolio Bonds (Tax) Regulations 1999 (S.I. 1999/1029).
Regulation 1 provides for the citation and commencement of these Regulations, and regulation 2 introduces the amendments.
Regulation 3 amends regulation 5 of the 1999 Regulations to reflect changes made to the taxation of personal portfolio bonds by Schedule 28 to the Finance Act 2001 (c. 9).
Regulation 4 makes consequential amendments to regulation 6 of the 1999 Regulations.

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Source: https://www.legislation.gov.uk/uksi/2001/2724 (the official version)
Page: https://openlegislation.uk/personal-portfolio-bonds-tax-amendment-regulations-2001
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.