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The Building Societies (Core Capital Deferred Shares) Regulations 2013

S.I. 2013/460 · Made 28 February 2013

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Capital Gains Tax

Corporation Tax

Income Tax

Stamp Duty

Stamp Duty Reserve Tax

Approved by the House of Commons

Made 28th February 2013

Coming into force in accordance with regulation 1(1)

The Treasury make the following Regulations in exercise of the powers conferred by section 221 of the Finance Act 2012f1.

A draft of this instrument was laid before and approved by a resolution of the House of Commons in accordance with section 221(6) of the Finance Act 2012.

Annotations to the whole text

Footnotes

f1

2012 c. 14.

Contents

  1. 1Citation, commencement and effect
  2. 2Core capital deferred shares
  3. 3Disapplication of provisions
  4. Signature
  5. Explanatory note

1Citation, commencement and effect

(1)

These Regulations may be cited as the Building Societies (Core Capital Deferred Shares) Regulations 2013 and come into force on the day after the day on which they are made.

(2)

These Regulations have effect in relation to shares issued, and securities converted into shares, on or after that date.

2Core capital deferred shares

(1)

In these Regulations, “core capital deferred shares” are deferred shares that form part of the core tier one capital of a building society.

(2)

For the purposes of this regulation—

(a)

“building society” and “deferred shares” have the same meanings as in the Building Societies Act 1986f1, and

(b)

the reference to “core tier one capital” is to be read in accordance with the Handbook of Rules and Guidance made by the Financial Services Authority (as that Handbook has effect from time to time)f2.

3Disapplication of provisions

(1)

The following provisions do not apply in relation to core capital deferred shares—

(a)

section 109 of the Building Societies Act 1986 (exemption from stamp duty),

(b)

section 372 of ITTOIA 2005 (building society dividends)f1,

(c)

section 889 of ITA 2007 (payments in respect of building society securities)f2,

(d)

the exclusion of a share in a building society in the definition of “share” in section 476(1) of CTA 2009 (other definitions)f3,

(e)

section 498 of CTA 2009 (building society dividends and interest),

(f)

section 1054 of CTA 2010 (building society payments) (and accordingly any interest, dividend or other distribution payable in respect of core capital deferred shares is a distribution of the society for corporation tax purposes).

(2)

Core capital deferred shares are not—

(a)

loan capital under section 78(7) of FA 1986f4,

(b)

qualifying corporate bonds under section 117 of TCGA 1992f5, or

(c)

restricted preference shares under section 160 of CTA 2010.

Signature

Mark Lancaster

Desmond Swayne

Two of the Lords Commissioners of Her Majesty’s Treasury

28th February 2013

Explanatory note

(This note is not part of the Regulations)

These Regulations make provision in relation to the taxation of a certain type of regulatory capital instrument that may be issued by building societies. These instruments are known as “core capital deferred shares” and are defined in regulation 2 as deferred shares that form part of the core tier one capital of a building society. Regulation 3 disapplies tax and stamp duty provisions relating to building society shares in relation to core capital deferred shares and provides that such shares are not loan capital for stamp duty purposes under section 78(7) of the Finance Act 1986, qualifying corporate bonds under the Taxation of Chargeable Gains Act 1992 or restricted preference shares under section 160 of the Corporation Tax Act 2010.

A Tax Information and Impact Note covering this instrument will be published on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm.