13(1)Schedule 19AC to the Taxes Act 1988 (modification of Taxes Act 1988 in relation to overseas life insurance companies) shall be amended as follows.U.K.
(2)Paragraph 2 (which falls with the repeal of paragraph 5B(1) to (3)) shall cease to have effect.
(3)In paragraph 5(1) (which notionally inserts subsections (6A) and (6B) into section 76) the notionally inserted subsection (6B) shall cease to have effect.
(4)In paragraph 5A (which confers entitlement to tax credits on overseas life insurance companies) after sub-paragraph (2) there shall be inserted—
“(3)Nothing in this paragraph shall be taken to confer on an overseas life insurance company any entitlement to make a claim under section 231(3).”
(5)In paragraph 5B (which makes provision similar to section 242) sub-paragraphs (1) to (3) shall cease to have effect.
(6)For sub-paragraph (1) of paragraph 9 (which makes provision similar to section 434(1)) there shall be substituted—
“(1)In section 434, the following subsections shall be treated as inserted after subsection (1B)—
“(1C)The exclusion from section 11(2)(a), (aa) or (ab) of distributions received from companies resident in the United Kingdom shall not apply in relation to—
(a)the charge to corporation tax on the life assurance profits of an overseas life insurance company computed in accordance with the provisions of this Act applicable to Case I of Schedule D; or
(b)any computation of such profits in accordance with those provisions.
(1D)Paragraph 2 of Schedule F shall not have effect for the purposes of subsection (1C)(a) or (b) above, but this subsection shall not apply in relation to distributions in respect of which an overseas life insurance company is entitled to a tax credit under section 441A.
(1E)The reference in subsection (1C) above to the life assurance profits of an overseas life insurance company is a reference to the profits of the company—
(a)in respect of its life assurance business; or
(b)in respect of any category of life assurance business which it carries on.””
(7)Paragraph 9A (which falls with the repeal of section 434A(1)) shall cease to have effect.
(8)Sub-paragraph (1) of paragraph 10 (which notionally inserts into section 438 a provision similar to section 438(3) and (3AA)) shall cease to have effect.
(9)Sub-paragraph (2) of paragraph 10 (which notionally modifies subsections (6), (6A), (6D) and (6E) of section 438) shall cease to have effect.
(10)Paragraph 10A (which notionally inserts into section 439B a provision similar to section 439B(7)) shall cease to have effect.
(11)In paragraph 11A, sub-paragraph (1) (which notionally inserts into section 441A a provision similar to section 441A(1)) shall cease to have effect.
(12)Paragraph 12(1) (which falls with the repeal of paragraph 5B(1) to (3)) shall cease to have effect.
(13). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(14)Sub-paragraphs (2), (3), (5), (7), (9), (12) and (13) above have effect for accounting periods beginning on or after 2nd July 1997.
(15)Sub-paragraphs (4), (6), (8), (10) and (11) above have effect in relation to distributions made on or after 2nd July 1997.
(16)In determining, for the purposes of paragraph 5B(1) to (3) of Schedule 19AC to the Taxes Act 1988, the UK distribution income of an overseas life insurance company for an accounting period beginning before 2nd July 1997 and ending on or after that date, there shall be left out of account any distributions which are made on or after 2nd July 1997.
(17)In determining, for the purposes of subsections (6) to (7) of section 438 of the Taxes Act 1988 (as notionally amended by paragraph 10(2) of Schedule 19AC to that Act), the UK distribution income of, or foreign income dividends arising to, an overseas life insurance company for an accounting period beginning before 2nd July 1997 and ending on or after that date, there shall be left out of account any distributions which are made on or after 2nd July 1997.