Income and Corporation Taxes Act 1988

[F1333B Involvement of insurance companies with plans and accounts.U.K.

(1)The Treasury may make regulations providing exemption from tax for income from, and chargeable gains in respect of, investments and deposits of so much of an insurance company’s [F2long-term insurance fund] as is referable to [F3plan business].

(2)The Treasury may by regulations modify the effect of section 30(4) of the M1Finance (No. 2) Act 1997 (which repeals section 231(2) of the Taxes Act 1988 with effect from 6th April 1999) in relation to distributions which—

(a)are made before 6th April 2004; and

(b)are received by an insurance company in respect of investments of so much of its [F2long-term insurance fund] as is referable to [F3plan business].

(3)Regulations under this section may make provision for insurance companies that are not resident in the United Kingdom to be treated, in relation to investments of so much of their [F2long-term insurance funds] as are referable to [F3plan business]—

(a)as if they were so resident for the purposes of any enactment conferring an entitlement to, or to the payment of, tax credits in respect of investments; and

(b)as if such other conditions of any entitlement to, or to the payment of, tax credits were also satisfied.

(4)Regulations under section 333 or this section [F4or Chapter 3 of Part 6 of ITTOIA 2005 (except sections 697 and 698)] may include provision which, in relation to insurance companies that are not resident in the United Kingdom—

(a)requires a person to be appointed to be responsible for securing the discharge of any duties to which such an insurance company is subject under the regulations; and

(b)confers rights and powers, and imposes liabilities, on a person so appointed;

and, without prejudice to the generality of paragraphs (a) and (b) above, regulations made by virtue of this subsection may include any provision corresponding to any that, in relation to a European institution, may be made under [F5section 697 or 698 of ITTOIA 2005 (requirements concerning foreign plan managers)].

(5)Regulations under this section may provide that an insurance company—

(a)shall comply with any notice served on it by the Board which requires it, within a prescribed period, to make available for the Board’s inspection documents (of a prescribed kind) relating to, or to matters connected with, its past or present [F6plan business]; and

(b)shall, within a prescribed period of being required to do so by the Board, furnish to the Board information (of a prescribed kind) about its past or present [F6plan business] or any matters connected with it.

(6)Any power of the Treasury under this section to make provision by regulations in relation to insurance companies shall include power by regulations to make such corresponding provision in relation to friendly societies as the Treasury think fit.

(7)Regulations under this section may—

(a)for purposes connected with any exemption from tax conferred by virtue of subsection (1) above, apply or modify any provision made by or under the Tax Acts;

(b)make different provision for different cases;

(c)include such incidental, supplemental, consequential and transitional provision as the Treasury may consider appropriate.

(8)Without prejudice to the generality of the powers conferred by subsection (7) above, the provision that may be made in connection with an exemption from tax conferred by virtue of subsection (1) above shall include provision for section 436 to apply (with any such modifications as may be prescribed) in relation to [F7plan business] as it applies in relation to pension business.

(9)In this section—

  • “friendly society” has the same meaning as in Chapter II of Part XII;

  • [F8“insurance company” means an undertaking carrying on the business of effecting or carrying out contracts of insurance and, for the purposes of this definition, “contract of insurance” has the meaning given by Article 3(1) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;]

  • “ [F2long-term insurance fund]” has the same meaning as in Chapter I of Part XII;

  • [F9“plan business”, in relation to an insurance company, means the business of the company that is attributable to the making of investments with that company under plans for which provision is made by regulations under Chapter 3 of Part 6 (except sections 697 and 698) of ITTOIA 2005 (income from individual investment plans)]

  • “prescribed” means prescribed by regulations under this section;

  • F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F3Words in s. 333B(1)(2)(b)(3) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 143(2) (with Sch. 2)

F4Words in s. 333B(4) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 143(3)(a) (with Sch. 2)

F5Words in s. 333B(4) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 143(3)(b) (with Sch. 2)

F6Words in s. 333B(5)(a)(b) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 143(4) (with Sch. 2)

F7Words in s. 333B(8) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 143(5) (with Sch. 2)

F8S. 333B(9): definition of "insurance company" substituted (1.12.2001 in accordance with art. 1(2)(a) of the amending S.I.) by The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629), art. 22

F9S. 333B(9): definition of "plan business" inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 143(6)(a) (with Sch. 2)

F10S. 333B(9): definition of "section 333 business" repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 143(6)(b), Sch. 3 (with Sch. 2)

Modifications etc. (not altering text)

Marginal Citations