Part 3U.K.Trading income

Chapter 9U.K.Trade profits: other specific trades

Reserves of marketing authorities etcU.K.

153Reserves of marketing authorities and certain other statutory bodiesU.K.

(1)This section applies to a statutory body if its object (or one of its objects) is—

(a)marketing an agricultural product, or

(b)stabilising the price of an agricultural product.

(2)Subsections (3) and (4) apply if the body is required, by or under an approved scheme or arrangement (“the scheme”), to pay the whole or part of any trading surplus into a reserve fund meeting the conditions specified in section 154.

(3)Any sums which the body is required by or under the scheme to pay into the fund out of the profits of its trade are allowed as deductions in calculating the profits of the trade.

(4)Any sums withdrawn by the body from the fund are taken into account as trading receipts, except so far as—

(a)they are required, by or under the scheme, to be paid to a Minister or department,

(b)they are distributed to producers of the product in question, or

(c)they are refunded to persons who pay any levy or duty.

(5)In this section—

• “approved scheme or arrangement” means a scheme or arrangement approved by, or made with, a Minister or department,

• “producers of the product” includes persons producing the product from another product,

• “statutory body” means a body established by or under an enactment,

• “trading surplus” means a surplus from the body's trading operations or other trade receipts.

154Conditions to be met by reserve fundU.K.

(1)These are the conditions to be met by the reserve fund (see section 153(2)).

(2)The first condition is that no sum may be withdrawn from the fund without the authority or consent of a Minister or department.

(3)The second condition is that if—

(a)money has been paid to the body by a Minister or department—

(i)in connection with arrangements for maintaining guaranteed prices, or

(ii)in connection with the body's trading arrangements, and

(b)the money is repayable to the Minister or department,

sums standing to the credit of the fund are required to be applied (in whole or in part) in repaying the money.

(4)The requirement mentioned in subsection (3) must be imposed by or under the scheme or arrangement mentioned in section 153(2).

(5)The third condition is that—

(a)the fund is reviewed by a Minister at intervals fixed by or under the scheme or arrangement mentioned in section 153(2), and

(b)if the fund appears to the Minister to exceed what is reasonably required by the body, the excess is withdrawn from the fund.

155Interpretation of sections 153 and 154U.K.

(1)In sections 153 and 154 “Minister” means—

(a)a Minister of the Crown,

(b)the Scottish Ministers,

(c)the Welsh Ministers, or

(d)a Minister within the meaning of the Northern Ireland Act 1998 (c. 47).

(2)In sections 153 and 154 “department” means—

(a)a government department,

(b)a part of the Scottish Administration,

(c)a part of the Welsh Assembly Government, or

(d)a Northern Ireland department.