The Personal Equity Plan (Amendment) Regulations 2003

• Citation: S.I. 2003/2748
• Sections: 7

Section 1 Citation, commencement and effect

(1) These Regulations may be cited as the Personal Equity Plan (Amendment) Regulations 2003 and shall come into force on 17th November 2003.

(2) Regulations 3, 4 and 5(c) of these Regulations, and the provisions inserted by regulation 6 of these Regulations (so far as those provisions relate to regulation 6(2)(ja) of the principal Regulations), shall have effect from the coming into force of these Regulations.

(3) These Regulations shall otherwise have effect from 6th April 2004.

Section 2 Citation, commencement and effect

The Personal Equity Plan Regulations 1989 (“the principal Regulations”) are amended as follows.

Section 3 Citation, commencement and effect

In regulation 2(1)(b)—

(a) insert at the appropriate places the following definitions—

a “Chapter 5 UCITS ” means a UCITS complying with Chapter 5 of the Collective Investment Schemes Sourcebook;

“the Collective Investment Schemes Sourcebook” means the sourcebook of that name made by the Financial Services Authority under the Financial Services and Markets Act 2000 ;

(b) in the definition of a “relevant UCITS” omit the words following paragraph (ii);

(c) in the definition of “units in, or shares of, a relevant UCITS” omit “relevant” in both places it appears.

Section 4 Citation, commencement and effect

In regulation 5(1ZA) omit the definition of “the Collective Investment Schemes Sourcebook”.

Section 5 Citation, commencement and effect

In regulation 6(2)—

(a) in both sub-paragraphs (g) and (j) for the words from “scheme satisfies” to the end substitute “units or shares satisfy the condition specified in paragraph (13)”;

(b) in sub-paragraph (h) for the words from “UCITS satisfies” to the end substitute “units or shares satisfy the condition specified in paragraph (13);

(c) after sub-paragraph (j) insert—

(ja) units in, or shares of, a Chapter 5 UCITS, in circumstances where the units or shares satisfy the condition specified in paragraph (13);

(d) insert at the end—

(p) investments which—

(i) were held under the plan on 6th April 2004; and

(ii) immediately before that date, fell within sub-paragraphs (g), (h) or (j), or sub-paragraph (k) so far as the relevant investments (within the meaning in the definition of “depositary interest”) fell within any of those sub-paragraphs.

Section 6 Citation, commencement and effect

At the end of regulation 6 add—

(12) Qualifying investments for plans falling within sub-paragraph (k) of paragraph (2), so far as the relevant investments (within the meaning given in the definition of “depositary interest”) fall within any of sub-paragraphs (g), (h), (j) or (ja) of that paragraph, must satisfy the condition specified in paragraph (13).

(13) The condition specified in this paragraph is that, during the period of five years from the date on which the qualifying investments in question were first held in the plan, there was no time when—

(a) the contract under which the investments were acquired, or any other transaction entered into at any time by the plan investor or any other person, or

(b) the nature of the underlying subject matter of the investments,

had the effect that the plan investor was not exposed, or not exposed to any significant extent, to the risk of loss from fluctuations in the value of the investments exceeding 5% of the capital consideration paid or payable for the acquisition of those investments.

(14) In this regulation references, in relation to qualifying investments, to—

(a) the underlying subject matter are references to or to the value of the investments, currencies or other matters to which, or to the value of which, those qualifying investments or their value is referable;

(b) the capital consideration paid include the incidental costs of acquisition; and

(c) the value are to be construed applying regulation 5(1A), but deducting the incidental costs that would be incurred by a disposal.

Section 7 Citation, commencement and effect

In regulation 24A(3)(a) after paragraph (vi) insert—

(via) units in, or shares of, a Chapter 5 UCITS, which satisfy the condition in regulation 6(13);