Statutory Instruments
2021 No. 1385
Capital Gains Tax
The London Capital and Finance Compensation Scheme (Chargeable Gains Exemption) Regulations 2021
Made
8th December 2021
Laid before the House of Commons
9th December 2021
Coming into force
2nd January 2022
The Treasury make the following Regulations in exercise of the powers conferred by paragraphs 2(5) and (6) and 4(3)(c) of Schedule 15 to the Finance Act 2020( 1 ).
Citation, commencement and effect
1. —(1) These Regulations may be cited as the London Capital and Finance Compensation Scheme (Chargeable Gains Exemption) Regulations 2021 and come into force on 2nd January 2022.
(2) These Regulations have effect in relation to disposals made on or after 20th October 2021.
Exemption from capital gains tax for compensation payments to customers under LCF Compensation Scheme
2. —(1) A compensation payment made under the LCF Compensation Scheme is a qualifying payment for the purposes of paragraph 4 of Schedule 15 to the Finance Act 2020.
(2) In this regulation—
(a) “ the LCF Compensation Scheme ” means the scheme established by the Treasury on 3rd November 2021( 2 ) and administered by the Financial Services Compensation Scheme Limited which provides compensation to customers of London Capital & Finance plc adversely affected by matters identified in the Gloster Report;
(b) “ the Gloster Report ” means the Report of the Independent Investigation into the Financial Conduct Authority’s Regulation of London Capital & Finance plc, as revised on 10 December 2020( 3 ).
Craig Whittaker
Alan Mak
Two of the Lords Commissioners of Her Majesty’s Treasury
8th December 2021
The Scheme Rules are published at https://www.gov.uk/government/publications/london-capital-finance-lcf-compensation-scheme , and paper copies can be obtained on application to The Correspondence and Enquiry Unit, HM Treasury, 1 Horse Guards Road, Westminster, London SW1A 2HQ.
The Report was delivered to the Financial Conduct Authority on 23 November 2020 and revised on 10 December 2020. It was presented to Parliament under section 82 of the Financial Services Act 2012 (c. 21) and is available at https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/945247/Gloster_Report_FINAL.pdf .
2000 c. 8 . Part 15A was added by section 17 of the Financial Services Act 2010 (c. 28) .