Explanatory note

These Regulations, which come into force on 2nd January 1996, provide that European authorised institutions within the meaning of the Banking Co-ordination (Second Council Directive) Regulations 1992 (S.I. 1992/3218, amended by S.I. 1993/3225 and 1995/1217), which may accept deposits in the United Kingdom in accordance with those Regulations (“relevant European institutions”) and which operate tax-exempt special savings accounts, must appoint tax representatives for the purpose of discharging the duties of the institution under the Tax-exempt Special Savings Account Regulations 1990 (“the principal Regulations”) or make other arrangements with the Commissioners of Inland Revenue for the discharge of those duties. They also amend the principal Regulations so as to add relevant European institutions to the societies and institutions which may operate accounts and make further amendments which are consequential on that addition.

Part I of the Regulations contains general provisions, Part II contains provisions concerning tax representatives of relevant European institutions and Part III contains amendments to the principal Regulations.

In Part I, regulation 1 provides for citation, commencement and effect and regulation 2 contains definitions.

In Part II, regulation 3 requires relevant European institutions operating accounts to appoint tax representatives or make other arrangements with the Commissioners of Inland Revenue for the discharge of prescribed duties and regulation 4 prescribes the duties in question as those that fall to be discharged under the principal Regulations. Regulation 5 provides for the termination of the appointment of tax representatives and regulation 6 sets out the powers and liabilities of tax representatives. Regulation 7 amends section 326B(3) of the Income and Corporation Taxes Act 1988 so that the same consequences follow if an account ceases to be a tax-exempt special savings account by virtue of Part II of these Regulations as in the case of any other breach of the statutory conditions.

In Part III, regulation 8 adds definitions to the principal Regulations and amends the definition of a “society or institution”to include relevant European institutions. Regulation 9 contains amendments to the principal Regulations setting out the information to be provided by relevant European institutions intending to operate accounts. Regulations 10 and 11 make consequential amendments to the circumstances specified in the principal Regulations in which a society or institution ceases to be entitled to operate accounts and to the requirements for the inspection of records of a society or institution.