(1)    This Order may be cited as the Government Stock (Consequential and Transitional Provision) Order 2004.

(2)    This Order shall, for the purposes of making the first regulations under section 47 of the Finance Act 1942 as amended by section 140(1) of the Finance Act 2002, come into force on 29 June 2004.

(3)    This Order shall come into force for all other purposes on 1st July 2004.

(1)    The Finance Act 1942 is amended as follows.

(2)    In section 47 (transfer and registration of Government Stock)—

(a)    in subsection (1ZA), for “the Bank of England” there is substituted “the person or persons appointed in accordance with regulations under subsection (1)(b)”;

(b)    in subsection (1A)—

(i)    for “the Bank of England” there is substituted “the person or persons appointed in accordance with regulations under subsection (1)(b)”;

(ii)    the words “standing in their books” are omitted.

With effect from the coming into force of the first regulations under section 47 of the Finance Act 1942 as amended by section 140(1) of the Finance Act 2002, the Bank of England is deemed to be the person appointed by the Treasury in accordance with those regulations.

Joan Ryan

John Heppell

Two of the Lords Commissioners of Her Majesty's Treasury

8th June 2004

Section 140(2) of the Finance Act 2002 (c 23) provides that the Treasury may by order make such consequential, incidental, supplementary and transitional provision as appears to them to be necessary or expedient in consequence of the amendments made by subsection (1) of that section, including provision amending, repealing or revoking any enactment.

The amendments made by subsection (1) of section 140 of the Finance Act 2002 amend section 47 of the Finance Act 1942 (c 21) so as to enable the Treasury to make regulations which make provision for them to appoint a person to administer Government stock and bonds (including the registration of holders).

As a result of those amendments it is necessary to make two consequential amendments to section 47 of the Finance Act 1942, so as to replace references to the Bank of England in subsections (1ZA) and (1A) with references to the person or persons appointed in accordance with regulations under subsection (1)(b) of that section. Article 2 of this Order makes those consequential amendments.

Article 3 of this Order makes transitional provision relating to the continuation of the Bank of England as the administrator of Government stock and bonds from the coming into force of the first set of regulations under section 47 of the Finance Act 1942 as amended by section 140(1) of the Finance Act 2002.

A full regulatory impact assessment has not been produced for this instrument as it has no impact on the costs of business.