fa84/s126.- Finance Act 1984 Section 126 Tax exemptions in relation to designated international organisations.

126. - (Where -

(a) the United Kingdom or any of the communities is a member of an international organisation; and

(b) the agreement under which it became a member provides for exemption from tax, in relation to the organisation, of the kind for which provision is made by this section;

the Treasury may, by order made by statutory instrument, designate that organisation for the purposes of this section ¹ .

(2) Where an organisation has been so designated, the provisions mentioned in subsection (3) below shall, with the exception of any which may be excluded by the designation order, apply in relation to that organisation.

(3) The provisions are -

* * * * *

(b) any security issued by the organisation shall be taken, for the purposes of [inheritance tax ² [ and capital gains tax, to be situated outside the United Kingdom;

(14) The Treasury may, by order made by statutory instrument, designate any of the Communities or the European Investment Bank for the purposes of this section and references in subsections (2) and (3) above to an organisation designated for the purposes of this section include reference to a body so designated by virtue of this subsection ³ .] ⁴

* * * * *

1 The Asian Development Bank was so designated by the Treasury under S.I. 1984 No. 1215 with effect from 2 August 1984 and the African Development Bank under S.I. 1984 No. 1634 with effect from 22 October 1984.

2 See 1986 s.100(1) and (2) - for any liability to tax arising on and after 25 July 1986 any reference in the legislation to capital transfer tax has effect as a reference to inheritance tax.

3 1985 s.96(1).

4 The European Economic Community, The European Coal and Steel Community, The European Atomic Energy Community and The European Investment Bank were so designated by the Treasury under S.I. 1985 No. 1172 with effect from 25 July 1985.