The Insurance Companies (Corporation Tax Acts) (Amendment) (No. 2) Order 2008

Amendment of section 432YA of the Income and Corporation Taxes Act 1988

2.—(1) Amend section 432YA of the Income and Corporation Taxes Act 1988 (long-term business other than life assurance business – adjustment consequent on change in Insurance Prudential Sourcebook)(1) as follows.

(2) In subsection (2), for “long-term business which is not life assurance business” substitute “PHI business”.

(3) For subsection (6) substitute—

“(6) This section is subject to sections 82E and 82F of the Finance Act 1989 (treatment of transferors and transferees under insurance business transfer schemes)(2) and those sections shall apply in relation to this section as if—

(a) any reference in them to a provision of section 82D of that Act (treatment of profits: life assurance – adjustment consequent on change in Insurance Prudential Sourcebook) were a reference to the corresponding provision of this section, and

(b) the reference to life assurance business in section 82E was a reference to PHI business.”.

(4) In the heading, for “long-term business other than life assurance business” substitute “PHI business”.

(1)

Section 432YA(2) was substituted and 432YA(6) was added by article 3 of S.I. 2007/1031.

(2)

1989 c. 26; section 82E was inserted by article 13 of S.I. 2007/1031, and section 82F was inserted by article 13 of S.I. 2007/1031, and amended by article 2 of S.I. 2008/1905.