INCOME TAX Citation and commencement 1 These Regulations may be cited as the Personal Equity Plan(Amendment) Regulations 1991 and shall come into force on 6th April1991. Interpretation 2 In these Regulations“the principal Regulations ” means the Personal Equity Plan Regulations 1989 and, unless the context otherwise requires,“regulation” means a regulation of those Regulations. Amendments to the principal Regulations 3 In regulation 2(1)(a) the definition of“the 1986 Regulations” and the semi-colon preceding it shall be omitted. 4 In regulation 4 — a in paragraph (1) the words“(subject to regulation 10)” shall be omitted; b in paragraph (3)(a) for“30” there shall be substituted“42”. 5 In regulation 5— a for paragraph (3) there shall be substituted— 3 A plan investor’s cash subscription and any other cash held by aplan manager under a plan shall be held only in sterling and bedeposited in an account with a deposit-taker or a building society whichis designated for the purposes of these Regulations only. ; b in paragraph (5) after the words“regulation 6(3)(b)” there shall be inserted the words“, or in paired shares,” and for the words“and investment trusts” there shall be substituted the words“, investment trusts and paired shares”. 6 In regulation 6— a in paragraph (2) after sub-paragraph (b) there shall be inserted— ba subject to the condition specified in paragraph (3)(a),investments in units comprising shares issued by a body corporateincorporated in the United Kingdom which are paired with shares issuedby a body corporate which is not so incorporated (“paired shares”); . b in paragraph (3)(a) for the words“and investment trusts” there shall be substituted the words“, investment trusts and paired shares”; c in paragraph (4) for“£900” there shall be substituted the words“one quarter of the subscription limit”. d after paragraph (4) there shall be added— 5 For the purposes of this regulation, shares issued by a bodycorporate incorporated in the United Kingdom (“the UK company”) are paired with shares in a body corporate which is not soincorporated (“the foreign company”) where— a the articles of association of the UK company and the equivalentinstruments governing the foreign company each provide that no share inthe company to which they relate may be transferred otherwise than aspart of a unit comprising one share in that company and one share in theother; and b such units have been offered for sale to the public in the UnitedKingdom and, at the same time, other such units have been offered forsale to the public at a broadly equivalent price in the country in whichthe foreign company is incorporated. 7 In regulation 6A — a in paragraph (1) for the words“in accordance with the condition in paragraph (2)(b)” there shall be substituted the words“with the proceeds of sale of those investments”; b for paragraph (2)(b) there shall be substituted— b that the total amount of the cash subscription to the plan forthe year ending 5th April 1991 which was invested in non-qualifyinginvestments on that date did not exceed £900; c that the total amount of the cash subscription to the plan investedin authorised unit trusts, funds of funds and investment trusts in anyyear beginning after 5th April 1991 does not exceed one quarter of thesubscription limit. 8 In regulation 7(2)(b) the words“(subject to regulation 10)” shall be omitted. 9 Regulation 10 shall be omitted. 10 1 Regulation 17 shall be renumbered as paragraph (1) of thatregulation. 2 In regulation 17— a in paragraph (1) the words from“, except interest” to“for his benefit” shall be omitted. b after paragraph (1) there shall be added— 2 Interest on a cash deposit which is a plan investment— a where the cash is deposited in an account with a deposit-taker,shall be paid or credited gross and the deposit shall not be treated asa relevant deposit within the meaning of section 481(4) of the Incomeand Corporation Taxes Act 1988 , and b where the cash is deposited in an account with a building society,shall be treated as a gross payment to which regulation 4 of the IncomeTax (Building Societies) (Dividends and Interest) Regulations 1990 applies. 11 After regulation 17 there shall be inserted— Interest on cash deposits paid to plan investor 17A 1 When in any year an amount of interest paid or creditedin respect of a cash deposit which is a plan investment— a is paid by the plan manager to or at the direction of the planinvestor or otherwise applied for his benefit, and b the aggregate of that amount and of all other amounts so paid in theyear exceeds £180, paragraph (2) shall apply. 2 Where this paragraph applies— a the plan manager shall pay to the Board a sum representing incometax at the basic rate in force for the year on— i all amounts paid in that year before this paragraph first applies,and ii the amount referred to in paragraph (1) and each further amount paidin that year; b any sum so payable shall be treated as an amount of tax due under anassessment which is final and conclusive and payable, in the case of thesum payable in respect of the amounts referred to in sub-paragraph(a)(i), not later than 30 days after the date on which this paragraphfirst applies in any year and, in any other case, not later than 30 daysafter payment of the amount referred to in paragraph (1); c the interest referred to in paragraph (1) shall be treated in allother respectsas interest of money within the meaning of paragraph (a)of Case III ofSchedule D in section 18(3) of the Taxes Act andchargeable to tax under that Case for the year in which it arises. 3 The reference to interest in paragraph (1) includes a reference toany bonus and to a dividend paid or credited in respect of a shareaccount with a building society. 12 In regulation 18(3) after paragraph (a) there shall beinserted— aa any sum representing income tax which is payable underregulation 17A on amounts of interest paid or credited gross and paid bythe plan manager to or at the direction of the plan investor orotherwise applied for his benefit; . Greg Knight Nicholas Baker Two of the Lords Commissioners of Her Majesty’s Treasury 19th March 1991