Explanatory note

These Regulations revoke certain Regulations, and amend other Regulations, relating to stock lending arrangements and manufactured payments. The revocations and amendments reflect changes to simplify the tax treatment of stock lending arrangements and manufactured payments made by Schedule 10 to the Finance Act 1997 (c. 16).

Regulation 1 provides for citation and commencement.

Regulation 2 and Schedule 1 revoke the Income Tax (Stock Lending) Regulations 1989 (S.I. 1989/1299), together with subsequent Regulations amending those Regulations, in relation to stock lending arrangements entered into on or after 1st July 1997.

Regulation 3 revokes the Income Tax (Dividend Manufacturing) Regulations 1992 (S.I. 1992/569) in relation to payments of manufactured dividends on United Kingdom equities made on or after 1st July 1997.

Regulation 4 and Schedule 2 revoke the Income Tax (Manufactured Interest) Regulations 1992 (S.I. 1992/2074), together with subsequent Regulations amending those Regulations, in relation to payments of manufactured interest made on or after 1st July 1997.

Regulation 5 revokes the Income Tax (Unapproved Manufactured Payments) Regulations 1996 (S.I. 1996/1226) in relation to payments of manufactured dividends on United Kingdom equities made on or after 1st July 1997.

Regulation 6 revokes the Income Tax (Manufactured Dividends) (Tradepoint) Regulations 1995 (S.I. 1995/2052) in relation to payments of manufactured dividends on United Kingdom equities made on or after 1st July 1997.

Regulation 7 makes amendments to three sets of Regulations relating to gilt-edged securities in consequence of an amendment made to Schedule 23A to the Income and Corporation Taxes Act 1988 (manufactured payments and interest) (“Schedule 23A”) by paragraph 11(1) of Schedule 10 to the Finance Act 1997. Those Regulations are the Gilt-edged Securities (Periodic Accounting for Tax on Interest) Regulations 1995 (S.I. 1995/3224), the Lloyd’s Underwriters (Gilt-edged Securities) (Periodic Accounting for Tax on Interest) Regulations (S.I. 1995/3225) and the Insurance Companies (Gilt-edged Securities) (Periodic Accounting for Tax on Interest) Regulations 1995 (S.I. 1995/3223).

Regulation 8 amends the Income Tax (Manufactured Overseas Dividends) Regulations 1993 (S.I. 1993/2004) in consequence of the amendments made to Schedule 23A by paragraphs 12 and 14 of Schedule 10 to the Finance Act 1997.