Explanatory note

These Regulations, which come into force on 18th August 1989, amend the Stamp Duty Reserve Tax Regulations 1986 (“the Principal Regulations”). The amendments are consequential upon the coming into force on that date of section 178 of the Finance Act 1989 and the Taxes (Interest Rate) Regulations 1989 (S.I. 1989/1297), of the amendment to section 92(2) of the Finance Act 1986 made by section 179(1) of the Finance Act 1989 and of the repeal of section 89 of the Taxes Management Act 1970 (c. 9).

Regulation 1 provides for citation and commencement and regulation 2 contains a definition.

Regulation 3 amends regulation 11(1) of the Principal Regulations by substituting a reference to the“rate applicable under section 178 of the Finance Act 1989”.

Regulation 4(a) amends Part I of the Schedule to the Principal Regulations by making an addition to the modifications in the second column alongside“86(1)” in the first column so as to secure that in section 86(1) of the Taxes Management Act 1970 (as modified) the“rate applicable under section 178 of the Finance Act 1989 for the purposes of section 92(2) of the Finance Act 1986” is substituted for the“prescribed rate”, and regulation 4(b) provides that the references in the first column to“89(1)(3)” and the modifications in the second column alongside them shall be omitted from Part I of that Schedule.

Regulation 5(a) amends Part II of the Schedule to the Principal Regulations by restating section 86(1) of the Taxes Management Act 1970 as further modified and regulation 5(b) provides that section 89 of that Act shall be omitted from that Part.