Finance Act 1989

[F1 83YA Changes in value of assets brought into account: non-profit companies U.K.

(1) This section applies if, in the case of any non-profit company,—

(a) the amount shown in line 51 of Form 14 of its periodical return in respect of the whole of its long-term business for any period of account (“the current period of account”), exceeds

(b) the aggregate amount of the amounts shown in line 51 of Form 14 of its periodical return in respect of its with-profits funds (if any) for that period.

(2) A comparison shall be made between—

(a) the appropriate line 51 amount of the company for the current period of account (“the current line 51 amount”), and

(b) the aggregate amount of the appropriate line 51 amount of the company for the previous period of account (if any) and the amount of any transfer-in amount of the company for that period.

(3) If the current line 51 amount is greater than that aggregate amount, an amount equal to the difference shall be deemed for the purposes of section 83(2) to be brought into account for the current period of account as an increase in the value of non-linked assets.

(4) If the current line 51 amount is less than that aggregate amount, an amount equal to the difference shall be deemed for the purposes of section 83(2) to be brought into account for the current period of account as a decrease in the value of non-linked assets.

(5) The amount brought into account by virtue of this section shall be deemed for the purposes of section 83(2) to be brought into account—

(a) in the revenue account mentioned in section 83A(2)(a), or

(b) if section 83A(4) is applicable, in the separate revenue account treated as prepared by virtue of that provision.

(6) Any amount brought into account by virtue of this section is in addition to any amount brought into account for the purposes of section 83(2) for the current period of account as an increase or decrease in the value of non-linked assets apart from this section.

(7) For the purposes of this section a company has a transfer-in amount for any period of account (“the previous period of account”) if [F2 a transfer takes place in the following period of account; and the amount of the transfer-in amount for the previous period of account is any amount by which—

(a) the [F3 admissible] value of such of the assets of the long-term insurance fund of the company immediately after the transfer as were assets of [F4 a non-profit fund of the transferor] immediately before the transfer, exceeds

(b) the amount of any business transfer-in brought into account in accordance with section 83(2)(e) in relation to the transfer.]

F5 (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) But if a company considers that, in relation to a period of account, it is no longer such a company, it may elect to be treated for the purposes of this section and section 83YB as if, in relation to that period of account and every subsequent period of account, it were a non-profit company.

(10) Any such election—

(a) is irrevocable, and

(b) must be made by notice to an officer of the Board on or before the end of the period of 6 months beginning with the day on which that period of account ends.

(11) For the purposes of this section and section 83YB—

• [F6 “admissible value” has the meaning given by section 83XA(9);]

• “amount”, in relation to line 51 of Form 14 of the company's periodical return, includes a nil amount;

• F7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F1 Ss. 83YA, S. 83YB inserted (with effect in accordance with Sch. 11 para. 7(2) of the amending Act) by Finance Act 2006 (c. 25), Sch. 11 para. 7(1)

F2 Words in s. 83YA(7) substituted (with effect in accordance with Sch. 9 para. 17(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 9 para. 7(2); S.I. 2008/379, art. 2

F3 Word in s. 83YA(7)(a) substituted (with effect in accordance with art. 1(4) of the amending S.I.) by The Insurance Business Transfer Schemes (Amendment of the Corporation Tax Acts) Order 2008 (S.I. 2008/381), arts. 1(1), 26(2)(a)

F4 Words in s. 83YA(7)(a) substituted (with effect in accordance with art. 1(4) of the amending S.I.) by The Insurance Business Transfer Schemes (Amendment of the Corporation Tax Acts) Order 2008 (S.I. 2008/381), arts. 1(1), 26(2)(b)

F5 S. 83YA(8) repealed (with effect in accordance with Sch. 10 para. 17(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 10 para. 8(2)(c), Sch. 27 Pt. 2(10)

F6 Words in s. 83YA(11) inserted (with effect in accordance with art. 1(4) of the amending S.I.) by The Insurance Business Transfer Schemes (Amendment of the Corporation Tax Acts) Order 2008 (S.I. 2008/381), arts. 1(1), 26(3)

F7 Words in s. 83YA(11) repealed (with effect in accordance with Sch. 10 para. 17(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 10 para. 8(2)(c), Sch. 27 Pt. 2(10)

Modifications etc. (not altering text)

C1 S. 83YA modified (19.7.2006) by Finance Act 2006 (c. 25), Sch. 11 para. 7(3)-(6)