The Inheritance Tax (Market Makers and Discount Houses) Regulations 2012

Made: 19th November 2012

Laid before the House of Commons: 21st November 2012

Coming into force: 31st December 2012

The Commissioners for Her Majesty's Revenue and Customs make the following Regulations in exercise of powers conferred by sections 106(5) and 107(5) of the Finance Act 1986 and now exercisable by them .

Citation and commencement

1

These Regulations may be cited as the Inheritance Tax (Market Makers and Discount Houses) Regulations 2012 and come into force on 31st December 2012.

Application of these Regulations

2

The day specified for the purposes of sections 106(6) and 107(6) of the Finance Act 1986 for the application of these Regulations is 31st December 2012.

Amendment of the Inheritance Tax Act 1984

3

The Inheritance Tax Act 1984 is amended as follows.

4

In section 105 (relevant business property), after subsection (4) insert—

(4A) Subsection (3) above also does not apply to any property if the business concerned is of a description set out in regulations under section 106(5) of the Finance Act 1986.

5

In section 234 (interest on instalments), for subsection (3)(c) substitute—

(c) any company— (i) whose business is wholly that of a market maker or is that of a discount house and (in either case) is carried on in the United Kingdom, or (ii) which is of a description set out in regulations under section 107(5) of the Finance Act 1986.

Description for the purposes of sections 105(4A) and 234(3)(c)(ii) of the Inheritance Tax Act 1984

6

For the purposes of section 105(4A) of the Inheritance Tax Act 1984 the description of a business is a business in an EEA State ... which—

• (a) holds itself out at all normal times, in compliance with the rules of a regulated market ..., as willing to buy and sell securities, stocks and shares at a price specified by it, and

• (b) is recognised as doing so by that regulated market.

7

For the purposes of section 234(3)(c)(ii) of the Inheritance Tax Act 1984 the description of a company is a company in an EEA State ... which—

• (a) holds itself out at all normal times, in compliance with the rules of a regulated market ..., as willing to buy and sell securities, stocks and shares at a price specified by it, and

• (b) is recognised as doing so by that regulated market.

Signed

Ruth Owen — Jim Harra — Two of Her Majesty's Commissioners for Revenue and Customs — 2012-11-19

Explanatory note

(This note is not part of the Regulations)

Footnotes

[^f00001]: 1986 c.41.

[^f00002]: Sections 106 and 107 of the Finance Act 1986 (“the 1986 Act”) contain powers for the Board to make regulations. Section 114 of the 1986 Act provides that Part 5 shall be construed as one with the Inheritance Tax Act 1984 (c. 51). Section 272 of that Act provides that “the Board” means the Commissioners of Inland Revenue. The functions of the Commissioners of Inland Revenue were transferred to the Commissioners for Her Majesty’s Revenue and Customs by section 5(1) of the Commissioners for Revenue and Customs Act 2005 (c.11). Section 50(1) of that Act provides that, in so far as it is appropriate in consequence of section 5, a reference, however expressed, to the Commissioners of Inland Revenue is to be taken as a reference to the Commissioners for Her Majesty’s Revenue and Customs.

[^f00003]: 1984 c.51.

Description for the purposes of sections 105(4A) and 234(3)(c)(ii) of the Inheritance Tax Act 1984

Editorial notes

[^c21448091]: 1986 c.41.

[^c21448101]: Sections 106 and 107 of the Finance Act 1986 (“the 1986 Act”) contain powers for the Board to make regulations. Section 114 of the 1986 Act provides that Part 5 shall be construed as one with the Inheritance Tax Act 1984 (c. 51). Section 272 of that Act provides that “the Board” means the Commissioners of Inland Revenue. The functions of the Commissioners of Inland Revenue were transferred to the Commissioners for Her Majesty's Revenue and Customs by section 5(1) of the Commissioners for Revenue and Customs Act 2005 (c.11). Section 50(1) of that Act provides that, in so far as it is appropriate in consequence of section 5, a reference, however expressed, to the Commissioners of Inland Revenue is to be taken as a reference to the Commissioners for Her Majesty's Revenue and Customs.

[^c21448111]: 1984 c.51.

[^key-40cc52094100d94428c1c7b3f6b64785]: Reg. 8 inserted (31.12.2020) by The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 33(4) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)

[^key-0baa9205886cf27b4f41fb414624f2da]: Words in reg. 6 omitted (31.12.2020) by virtue of The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 33(2)(a) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)

[^key-765edfe5457f8cd19e3a87ad992e0f64]: Words in reg. 6(a) omitted (31.12.2020) by virtue of The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 33(2)(b) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)

[^key-36ea853a0b46ea1affaf8c62b850bd13]: Words in reg. 7 omitted (31.12.2020) by virtue of The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 33(3)(a) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)

[^key-69c186c78a97cfbe1242d3240c97d1af]: Words in reg. 7(a) omitted (31.12.2020) by virtue of The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 33(3)(b) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)

[^key-01b5d079537541478719932a70da479d]: Reg. 8(c) substituted (31.12.2020) by The Taxes (Amendments) (EU Exit) (No. 2) Regulations 2019 (S.I. 2019/818), regs. 1(3), 12(2); 2020 c. 1, Sch. 5 para. 1(1)

8

In these Regulations “regulated market” means—

• (a) a UK regulated market within the meaning given by Article 2.1(13A) of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments,

• (b) an EU regulated market within the meaning given by Article 2.1(13B) of that Regulation, and

• (c) a Gibraltar regulated market within the meaning given by Article 26(11)(b)(i) of that Regulation.