The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001

Equalisation reserves

30.—(1) Except as provided in paragraph (4) below, in sections 444BA to 444BD (equalisation reserves)(1) for “section 34A regulations” in each place where it occurs substitute “equalisation reserve rules”.

(2) Amend section 444BA in accordance with paragraphs (3) and (4) below.

(3) In subsection (10) for “the regulations” substitute “the rules”.

(4) For subsection (11) substitute—

“(11) In this section, and in sections 444BB to 444BD, “equalisation reserves rules” means the rules in Chapter 6 of the Prudential Sourcebook (Insurers).”.

(5) In section 444BC(1) for “17 of the Insurance Companies Act 1982” substitute “9.3 of the Prudential Sourcebook (Insurers)”.

(6) Amend section 444BD in accordance with paragraphs (7) and (8) below.

(7) In subsection (2)(a) for sub-paragraphs (i) and (ii) substitute—

“(i) by an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to the Financial Services and Markets Act 2000 which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to effect or carry out contracts of insurance in the United Kingdom, or

(ii) by a firm which has permission under paragraph 4 of Schedule 4 to that Act (as a result of qualifying for authorisation under paragraph 2 of that Schedule) to effect or carry out contracts of insurance in the United Kingdom, or

(iii) in respect of any business which consists of the effecting or carrying out of contracts of insurance and which is carried on outside the United Kingdom by a company resident in the United Kingdom;”.

(8) In subsection (7)—

(a) for the definition of “credit insurance business” substitute—

• ““credit insurance business” means business which consists of the effecting or carrying out of contracts of insurance against risks of loss to the persons insured arising from—

  (a)

  the insolvency of debtors of theirs, or

  (b)

  from the failure (otherwise than through insolvency) of debtors of theirs to pay their debts when due;”;

(b) omit the definition of “EC company” and the word “and” immediately before it.

(9) This Article has effect in relation to periods of account ending on or after 1st December 2001.

(1)

Sections 444BA to 444BD were inserted by paragraph 1 of Schedule 32 to the Finance Act 1996.