78(1)Despite the enactment by this Act in the OEIC sections of provisions previously contained in regulations made under section 152 of FA 1995, the Treasury may continue to make regulations under that section for achieving any purpose that could be achieved by such regulations before the coming into force of the OEIC sections.U.K.
(2)Accordingly—
(a)regulations under that section may make provision for securing, in relation to the matters mentioned in subsection (1)(a) to (c) of that section, that the provision made by the OEIC sections corresponds, subject to such modifications as the Treasury consider appropriate, to the provision made by the enactments mentioned in subsection (2) of that section in relation to—
(i)unit trusts,
(ii)rights under, and the assets subject to, such trusts, and
(iii)transactions for purposes connected with such trusts, and
(b)that section has effect with such modifications as are required for the purposes of this paragraph.
(3)In this paragraph—
“the OEIC sections” means—
sections 373 to 375 of this Act (under which certain amounts are treated as interest paid by open-ended investment companies), and
sections 386 to 388 of this Act (under which certain amounts are treated as dividends paid by open-ended investment companies), and
“unit trust” has the same meaning as in section 152 of FA 1995 (see subsection (7)).
79U.K.Despite the repeal by this Act of section 104(4) of FA 2002, sections 430(5) and 442 (securities issued in accordance with qualifying earn-out right) apply whenever the security was issued.
80(1)Despite the repeal by this Act of paragraph 14(4) of Schedule 13 to FA 1996, a person who was deemed under that paragraph to have transferred a strip on 5th April 2005 is treated for the purposes of Chapter 8 of Part 4 (profits from deeply discounted securities) as if the person had re-acquired the strip under that paragraph on 6th April 2005 for an amount equal to the amount for which it was deemed to have been transferred.U.K.
(2)That Chapter and this Part of this Schedule apply to a deemed transfer and reacquisition under that paragraph (including a reacquisition within sub-paragraph (1)) as if it were a transfer and reacquisition under section 445(2) and (3).
(3)Section 452 (power to modify that Chapter for strips) applies as if this paragraph were in that Chapter.
81(1)Sections 447 and 448 (restriction of profits and losses on strips by reference to original acquisition cost) do not apply to a strip acquired before 15th January 2004.U.K.
(2)For the purposes of paragraph (1) any deemed acquisitions under paragraph 14(4) of Schedule 13 to FA 1996 or section 445(3) of this Act are ignored.
82The references in section 454(4) and (5) to trustees include any person who, had the loss been a profit—
(a)would have been eligible for relief from tax for the tax year in which the loss is sustained as a result of section 505(1) of ICTA (exemption from income tax for certain income forming part of the income of a charity), or
(b)would have been so eligible but for section 505(3) of that Act (income that is not exempt in some circumstances for charities incurring non-qualifying expenditure).
83U.K.The references in section 454(4) and (5) to trustees include any person who, had the loss been a profit, would have been eligible for relief from tax for the tax year in which the loss is sustained as a result of—
(a)section 592(2) of ICTA (exemption from income tax for income from investments or deposit held for exempt approved pension schemes),
(b)section 608(2)(a) of ICTA (corresponding exemption for superannuation funds approved before 6th April 1980),
(c)section 613(4) of ICTA (corresponding exemption for parliamentary pension funds),
(d)section 614(2), (3), (4) or (5) of ICTA (corresponding exemption for certain overseas pension funds),
(e)section 620(6) of ICTA (corresponding exemption for retirement annuity funds), or
(f)section 643(2) of ICTA (corresponding exemption for approved personal pension schemes).
84Securities only fall within paragraph (f) of section 710(3) of ICTA (meaning of “securities” for purposes of sections 711 to 728), as substituted by Schedule 1 to this Act, if the disposal of the securities on or after 6th April 2005 would be a disposal of deeply discounted securities for the purposes of Chapter 8 of Part 4 of this Act.
85(1)This paragraph modifies the application of—U.K.
(a)section 474(4) (foreign policies of life insurance which are not qualifying policies),
(b)section 531(6) (foreign policies of life insurance to which section 530 applies), and
(c)section 532 (relief for policies and contracts with European Area Insurers),
in relation to a policy of life insurance which meets conditions A and B.
(2)Condition A is that the policy is a foreign policy of life insurance by virtue of paragraph (a) of the definition of that term in section 476(3).
(3)Condition B is that the income of the company which issued the policy was charged to corporation tax under section 445 of ICTA for an accounting period ending on or after the day on which the policy was issued.
(4)The policy is treated as having been a qualifying policy for any part of the chargeable period when—
(a)it would have been treated as a qualifying policy apart from section 474(4), and
(b)the conditions in either sub-paragraph (3) or sub-paragraph (4) of paragraph 24 of Schedule 15 to ICTA (as it then had effect) were met.
(5)The policy meets condition B in section 531(6) if—
(a)the conditions in either sub-paragraph (3) or sub-paragraph (4) of paragraph 24 of Schedule 15 to ICTA (as it then had effect) were met throughout the chargeable period, and
(b)the conditions in sub-paragraph (3) of that paragraph are met throughout the period—
(i)beginning immediately after the end of the chargeable period, and
(ii)ending with the date on which the gains mentioned in section 531(1) arise.
(6)Despite the definition of “policy period” in section 532(5), for the purposes of determining whether conditions A to C in that section have been met in relation to the policy or contract throughout the policy period, that period is to be taken not to include—
(a)any part of the chargeable period when the conditions in either sub-paragraph (3) or sub-paragraph (4) of paragraph 24 of Schedule 15 to ICTA (as it then had effect) were met, and
(b)any subsequent period when the conditions in sub-paragraph (3) of that paragraph are met.
(7)In this paragraph “the chargeable period” means the period—
(a)beginning with the date on which the policy was issued, and
(b)ending with the last day of the last accounting period for which the company which issued the policy was liable to tax under section 445 of ICTA.
86(1)Subject to sub-paragraph (4), before 6th April 2006 Chapter 9 of Part 4 applies with the following amendments.
(2)For section 479 (exclusion of pension policies) substitute—
“479(1)This Chapter does not apply to a pension policy.
(2)In this section “pension policy” means—
(a)a policy of life insurance issued in connection with an approved scheme,
(b)a policy of insurance which is, or is evidence of, a contract for the time being approved under section 621 of ICTA (contracts to provide for surviving spouses and dependants), or
(c)a policy of life insurance held in connection with an approved personal pension scheme.
(3)In this section—
“approved scheme” has the meaning given by section 612(1) of ICTA, and
“personal pension scheme” and “approved”, in relation to such a scheme, have the meaning given by section 630(1) of ICTA.”
(3)In section 486 (exclusion of maturity of capital redemption policies in certain circumstances) for “non-registered occupational pension” substitute “ sponsored superannuation ”.
(4)The power of the Treasury to make an order under section 281 or 283 of FA 2004 has effect as if Schedule 35 to that Act contained amendments—
(a)substituting section 479 of this Act for that section as substituted by sub-paragraph (2), and
(b)substituting “ non-registered occupational pension ” for “sponsored superannuation” in section 486 of this Act.
87U.K.Section 505 (assignments involving co-ownership) does not have effect in relation to any transaction which—
(a)took place in relation to a policy or contract in an insurance year beginning on or before 5th April 2001, and
(b)would otherwise and by reason only of the application of that section fall to be taken into account as an assignment of a part of or a share in the rights conferred by the policy or contract in a calculation under—
(i)section 507 (periodic calculations in part surrender and assignment cases), or
(ii)section 511 (transaction-related calculations in part surrender and assignment cases).
88(1)This paragraph applies if a calculation under section 507 or 511 in relation to a policy or contract requires account to be taken of any part of or share in the rights conferred by the policy or contract which has been assigned for money or money's worth in an insurance year beginning on or before 5th April 2001.U.K.
(2)Section 508 (the value of rights partially assigned) applies for the purposes of the valuation of each such part or share as if—
(a)in subsection (1) after “surrendered” (in both places where it occurs) there were inserted “ or assigned ”,
(b)in that subsection after “surrender” there were inserted “ or assignment ”, and
(c)subsection (4) were omitted.
89U.K.Regulations made under section 534 by virtue of paragraph 4 of this Schedule may apply—
(a)in relation to gains arising on or after 29th November 1994, and
(b)in relation to any gain arising before that date the income tax on which has not been the subject of an assessment that became final and conclusive before that date.
90(1)For the purposes of Chapter 9 of Part 4, any event occurring before 9th April 2003 in relation to a policy of life insurance which, at the time of the event, was a pure protection group life policy is deemed not to be a chargeable event.U.K.
(2)For the purposes of this paragraph a policy of life insurance is at any time a pure protection group life policy if at that time it is a group life policy whose terms do not provide for any sums or other benefits to be paid or conferred except on death or disability.
91U.K.Despite paragraph 4(1) of this Schedule, the references in section 151(2) of FA 1989 (assessment of trustees etc.) to gains treated as arising under Chapter 9 of Part 4 of this Act do not include references to gains treated as arising under Chapter 2 of Part 13 of ICTA on chargeable events before 6th April 1998.
92U.K.Section 551 (charge to income tax on profits from disposal of deposit rights) does not apply if the person disposing of the rights acquired them before 7th March 1973.
93(1)This paragraph applies if—U.K.
(a)a right falling within the definition of “uncertificated right” in section 552(2) is a right under an arrangement made on or before 16th July 1992, and
(b)the right to call for the issue of a certificate of deposit (as defined in that section) is a right under that arrangement.
(2)Chapter 11 of Part 4 (transactions in deposits) applies with the omission of section 552(1)(c) and (d)(i).
94(1)A transaction consisting in the running of a future to delivery or the exercise of an option is not treated as a disposal for the purposes of Chapter 12 of Part 4 if it took place before 6th February 1998.U.K.
(2)Sub-paragraph (1) is to be read as if it were part of section 564 (deemed disposal where futures run to delivery or options are exercised) (see, in particular, section 565).
95U.K.For the tax year 2005-06 section 568(4) (by virtue of which income within Chapter 12 of Part 4 arising to certain pension trustees is not treated as income to which section 686 of ICTA applies) has effect with the substitution for the words from “ held ” onwards of the words “held—
(a)for the purposes of a fund or scheme established for the sole purpose of providing relevant benefits (within the meaning of section 612 of ICTA), or
(b)for the purposes of a personal pension scheme (within the meaning of section 630 of ICTA) making provision only for such benefits as are mentioned in section 633 of ICTA (annuities and lump sums meeting certain conditions).”