The Insurance Companies (Taxation of Reinsurance Business) (Amendment No. 2) Regulations 2003

Amendments to regulation 5

5.  Amend regulation 5(1) (calculation of investment return in second and subsequent accounting periods other than final accounting period)(1) as follows—

(a) in the definition of Pn after “otherwise” insert “(but excluding any such sums paid in repayment of a loan or otherwise diminishing a debt such as is mentioned in paragraph 12(4)(a)(ii) of Appendix 9.4 of the Prudential Sourcebook (Insurers))”,

(b) in the definition of Cn after “otherwise” insert “(but excluding any such sums paid by way of a loan or otherwise creating a debt such as is mentioned in paragraph 12(4)(a)(i) of Appendix 9.4 of the Prudential Sourcebook (Insurers))”, and

(c) for “the result” substitute “

((P_n - C_n) + I_n - 1)

”.

(1)

Regulation 5(1) was amended by regulation 4(a) of S.I. 1996/1621.