Citation, commencement and extent

article 1 + 1.—(1) This Order may be cited as the Building Societies Act 1986 (Amendment of Small Business Turnover Limit) Order 2024.

(2) This Order comes into force on 4th^{November 2024.}

(3) This Order extends to England and Wales, Scotland and Northern Ireland.

Amendment of the small business turnover limit

article 2 + 2.—(1) The Building Societies Act 1986 is amended as follows.

(2) In subsections (10) and (11)(c) of section 7 (the funding limit)(2) for “£1,000,000” substitute “£6,500,000”.

EXPLANATORY NOTE

(This note is not part of the Order)

This Order amends section 7(10) and (11)(c) of the Building Societies Act 1986 (c. 53) (“the 1986 Act”) by increasing the turnover limit for a small business in a relevant financial year in section 7(10) of the 1986 Act from £1,000,000 to £6,500,000 and correspondingly amending the reference in section 7(11)(c) to the equivalent amount in any other currency.

Under section 7(3)(aa) of the 1986 Act read with section 7(3A) up to 10% of the value of deposits by small businesses is disregarded in determining the value of a building society group’s funds from all sources (described as X in section 7(2)). As provided in section 7(1) of the 1986 Act the value of shares held by individuals in a society (described as Y in section 7(2)) must represent at least 50% of the value of group funds.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen. A de minimis impact assessment is available from HM Treasury, 1 Horse Guards Road, London SW1A 2HQ and is published with the Explanatory Memorandum alongside this instrument on www.legislation.gov.uk.