The General Insurance Reserves (Tax) (Amendment) Regulations 2003

Amendment of the principal Regulations

6.—(1) Amend regulation 4 (provisions supplementing regulation 3) as follows.

(2) In paragraph (1)(1) for sub-paragraph (b) substitute—

“(ab) a scheme which would be an insurance business transfer scheme but for section 105(1)(b) of the Financial Services and Markets Act 2000;

(b) a transfer in accordance with an authorisation granted outside the United Kingdom for the purposes of Article 12 of Council Directive 92/49/EC(2) on the co-ordination of the laws, regulations and administrative provisions relating to direct insurance other than life assurance and amending Directives 73/329/EEC and 88/357/EEC,”.

(3) After paragraph (1) insert—

“(1A) Paragraph (2) also applies where, as a result of—

(a) a relevant transaction effected after 5th December 2003 between a corporate general insurer and another company—

(i) with which it is connected, and

(ii) which is within the charge to corporation tax in respect of that transaction, or

(b) a series of transactions having the same effect as a relevant transaction effected after 5th December 2003 between two companies which—

(i) have been connected with each other at any time in the course of that series of transactions, and

(ii) are within the charge to corporation tax in respect of the relevant transaction,

one of those companies directly or indirectly replaces the other as the insurer under a contract of insurance, or as the reinsurer under a contract of reinsurance, including (in either case) by way of novation.”.

(4) In paragraph (2)—

(a) at the end of sub-paragraph (a) omit “and”;

(b) after sub-paragraph (a) insert—

“(ab) an election made under section 107(4) by the transferor had been made by the transferee; and.”

(5) After paragraph (2) insert—

“(2A) In paragraph (2)(a) “technical provisions made and taken into account by the transferor” means, in relation to a period of account in which a transfer of business occurs, the technical provisions which would have been made and taken into account had the transferor’s period of account ended immediately before the transfer.

• The time at which the technical provisions are treated as made and taken into account by this paragraph shall be treated as the end of a period of account for the purposes of regulation 3(3) (and an election under section 107(4) may accordingly be made in respect of that period).”.

(6) In paragraph (3)—

(a) for “paragraph (c) of Rule 4.1” substitute “Rule 4.1C”;

(b) for “paragraph (b)(i) of Rule 4.1” substitute “Rule 4.1A(a)(i)”;

(c) for “paragraph (b)(ii) thereof” substitute “Rule 4.1A(a)(ii)”;

(d) for “the general insurer (as defined in that Rule)” substitute “the corporate general insurer”;

(e) in sub-paragraphs (a) and (c) before “general insurer” insert “corporate”; and

(f) in sub-paragraph (c) for “Rules 1 to 9” substitute “Rules 1 to 10”.

(1)

Paragraph (1) was amended by article 193(1) of S.I. 2001/3629.

(2)

O.J. L 228, 11/8/1992, p. 1, amended by Council Directives 95/26, 2000/64 and 2002/67.