# The Personal Portfolio Bonds (Tax) (Amendment) Regulations 2001, Regulation 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).”.

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Source: https://www.legislation.gov.uk/uksi/2001/2724/regulation/3 (the official version)
Page: https://openlegislation.uk/personal-portfolio-bonds-tax-amendment-regulations-2001/regulation-3
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.