Statutory Instruments
2006 No. 3195
CHILD TRUST FUNDS
The Child Trust Funds (Amendment No. 3) Regulations 2006
Made
30th November 2006
Laid before the House of Commons
1st December 2006
Coming into force
1st January 2007
The Treasury, in exercise of the powers conferred upon them by sections 13 and 28(1) to (4) of the Child Trust Funds Act 2004( 1 ), make the following Regulations:
Citation and commencement
1. These Regulations may be cited as the Child Trust Funds (Amendment No. 3) Regulations 2006 and shall come into force on 1st January 2007.
Amendment of the Child Trust Funds Regulations 2004
2. The Child Trust Funds Regulations 2004( 2 ) are amended as follows.
3. In regulation 2(1)(b) (interpretation) insert at the appropriate place—
“ “building society bonus”, except in regulation 24(a)(i), excludes any bonus, distribution of funds or the conferring of rights in relation to shares—
in connection with an amalgamation, transfer of engagements or transfer of business of a building society, and
mentioned in section 96 or 100 of the Building Societies Act 1986 ( 3 ) ,
and “payment under a building society bonus scheme” shall be construed accordingly;. ” .
4. In regulation 24(a) (exemption from tax)—
(a) in paragraph (i) at the end add “(excluding any building society bonus)”;
(b) after paragraph (ia)( 4 ) insert—
“ (ib) in respect of a payment under a building society bonus scheme, so far as the payment is calculated by reference to account investments (and if paid directly by the society into the account, the payment shall not count towards the subscription limit in regulation 9); ” .
5. After regulation 24(b) insert—
“ (ba) any gain or loss accruing on and attributable to a payment within paragraph (ib) of sub-paragraph (a) shall not be a chargeable gain or allowable loss for capital gains tax purposes; ” .
Claire Ward
Dave Watts
Two of the Lords Commissioners of Her Majesty’s Treasury
30th November 2006
S.I. 2004/1450 ; relevantly amended by S.I. 2005/3349 .
Paragraph (ia) was inserted by regulation 7(a) of S.I. 2005/3349 .