The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001

Stamp duty: demutualisation of insurance companies

100.—(1) Amend section 96 (demutualisation of insurance companies) as follows.

(2) In subsection (7) for paragraphs (a) and (b) substitute—

“(a) a transfer from a company to another person of business consisting of the effecting or carrying out of contracts of insurance which is effected under an insurance business transfer scheme; or

(b) a transfer of the whole or any part of the business of a general insurance company carried on through a branch or agency in the United Kingdom which takes place in accordance with any authorisation granted outside the United Kingdom for the purposes of—

(i) Article 11 of the third life assurance directive; or

(ii) Article 12 of the third non-life insurance directive.”.

(3) In subsection (8)—

(a) before the definition of “employee” insert—

• ““contract of insurance” has the meaning given by Article 3(1) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;”;

(b) for the definition of “insurance company” substitute—

““general insurance company” means a company which has permission under Part 4 of the Financial Services and Markets Act 2000 or under paragraph 15 of Schedule 3 to that Act (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to effect or carry out contracts of insurance;

“insurance business transfer scheme” has the same meaning as in Part 7 of the Financial Services and Markets Act 2000;

“insurance company” means a company which carries on the business of effecting or carrying out contracts of insurance;”;

(c) after the definition of “mutual insurance company” insert—

““the third life insurance directive” means the Council Directive of 10th November 1992 on the co-ordination of laws, regulations and administrative provisions relating to direct life assurance and amending Directives 79/267/EEC and 90/619/EEC (No. 92/96/EEC);

“the third non-life insurance directive” means the Council Directive of 18th June 1992 on the co-ordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance and amending Directives 73/239/EEC and 88/357/EEC (NO. 92/49/EEC)(1);”.

(4) This Article has effect in relation to any instrument executed on or after 1st December 2001 which effects a transfer—

(a) under a scheme falling within section 105 of the Financial Services and Markets Act 2000, including an excluded scheme falling within Case 2, 3 or 4 of subsections (3) of that section; or

(b) in relation to which section 116 of the Financial Services and Markets Act 2000 applies.

(1)

O.J. No. L228, 11.08.1992, pp. 1-23.