HC Deb 14 April 2003 vol 403 c773

Resolved,

That—

(1) Section 349 of the Income and Corporation Taxes Act 1988 shall be amended as follows.

(2) In subsection (3), at the end there shall be inserted "or—

(j) to interest paid by a recognised clearing house or recognised investment exchange carrying on business as provider of a central counterparty clearing service, in the ordinary course of that business, on margin or other collateral deposited with it by users of the service; or

(k) to interest treated by virtue of section 730A(2)(a) or (b) (repos) as paid by a recognised clearing house or recognised investment exchange in respect of contracts made by it as provider of a central counterparty clearing service.".

(3) In subsection (6), at the appropriate places there shall be inserted— "central counterparty clearing service" means the service provided by a clearing house or investment exchange to the parties to a transaction where there are contracts between each of the parties and the clearing house or investment exchange (in place of, or as an alternative to, a contract directly between the parties);"; "recognised clearing house" and "recognised investment exchange" have the same meaning as in the Financial Services and Markets Act 2000 (see section 285 of that Act);".

(4) The provisions of this Resolution shall have effect in relation to the payment of interest on or after 14th April 2003.

And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.