These Regulations provide for an exemption from capital gains tax in relation to compensation payments made under the LCF Compensation Scheme (“the Scheme”). The Treasury established the Scheme, requiring the Financial Services Compensation Scheme to administer the Scheme on the Treasury’s behalf in exercise of its powers under Part 15A of the Financial Services and Markets Act 2000. The Scheme compensates customers of London and Capital Finance plc (“LCF”) who were adversely affected by losses from investments in that company. In accepting a compensation payment under the Scheme, customers transfer to the scheme operator their rights to claim against LCF in respect of their losses.