Finance Act 1990

1 (1) Section 431 of the Taxes Act 1988 shall be amended as follows. U.K.

(2) In subsection (2)—

F1 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) there shall be inserted in the appropriate places in alphabetical order—

F2 “. . .”

““closing” and “opening”, in relation to a period of account, refer respectively to the position at the end and at the beginning of the period and, in relation to an accounting period, refer respectively to the position at the end and at the beginning of the period of account in which the accounting period falls;”

““closing liabilities” includes liabilities assumed at the end of the period of account concerned in consequence of the declaration of reversionary bonuses or a reduction in premiums;”

““industrial assurance business” has the same meaning as in the Insurance Companies Act 1982;”

““investment reserve”, in relation to an insurance company, means the excess of the value of the assets of the company’s long term business fund over the liabilities of the long term business;”

““liabilities”, in relation to an insurance company, means the liabilities of the company estimated as for the purposes of its periodical return (excluding any that have fallen due or been reinsured and any not arising under or in connection with policies or contracts effected as part of the company’s insurance business);”

F3 “. . .”

F4 “. . .”

““long term business fund” means the fund maintained by an insurance company in respect of its long term business or, where the company carries on both ordinary long term business and industrial assurance business, either or both (as the context may require) of the two funds so maintained;”

““ordinary long term business” and “ordinary life assurance business” mean respectively long term business and life assurance business that is not industrial assurance business;”

F5 “. . .”

““overseas life assurance fund” shall be construed in accordance with Schedule 19AA;”

““value”, in relation to assets of an insurance company, means the value of the assets as taken into account for the purposes of the company’s periodical return;”

““with-profits liabilities” means liabilities in respect of policies or contracts under which the policy holders or annuitants are eligible to participate in surplus;”.

F6 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Sch. 6 para. 1(2)(a) repealed (1.5.1995) by 1995 c. 4, s. 162, Sch. 29 Pt. VIII

F2 Sch. 6 para. 1(2)(b): Definition of “basic life assurance business” repealed (1.5.1995 with effect in accordance with Sch. 8 para. 57 of the amending Act) by 1995 c. 4, s. 162, Sch. 29 Pt. VIII(5) Note 2

F3 Sch. 6 para. 1(2)(b): Definition of “linked assets” repealed (1.5.1995 with effect in accordance with Sch. 8 para. 57 of the amending Act) by 1995 c. 4, s. 162, Sch. 29 Pt. VIII(5) Note 2

F4 Sch. 6 para. 1(2)(b): Definition of “long term business” repealed (1.12.2001) by S.I. 2001/3629, art. 109, Sch.

F5 Sch. 6 para. 1(2)(b): Definition of “overseas life assurance business” repealed (1.5.1995 with effect in accordance with Sch. 8 para. 55 of the amending Act) by 1995 c. 4, s. 162, Sch. 29 Pt. VIII(5) Note 1(with Sch. 8 paras. 55(2), 57(1))

F6 Sch. 6 para. 1(3)(4) repealed (1.5.1995 with effect in accordance with Sch. 8 para. 57 of the amending Act ) by 1995 c. 4, s. 162, Sch. 29 Pt. VIII(5) Note 2