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SCHEDULES

Section 21.

SCHEDULE 3U.K. Additional Provisions with Respect to Levies on Authorised Insurance Companies

Modifications etc. (not altering text)

C1Power to amend Sch. 3 conferred by Insurance Companies Act 1982 (c. 50, SIF 67), s. 67(4)

Sch. 3: functions made exercisable by, or by employees of, such person as may be authorised in that behalf by the Treasury (18.11.1998) by S.I. 1998/2842, art. 2, Sch. Pt. II para. 63(e)

Restrictions on the imposition of the leviesU.K.

1No levy may be imposed by the Board under section 21 above before the beginning of the financial year ending with 31st March 1977.

2(1)The amounts required to be paid by any company under general business levies imposed by the Board in any financial year shall not exceed one per cent. of any income of the company for the year ending last before the beginning of that financial year which is income liable to the general business levy.

(2)The amounts required to be paid by any company under long term business levies imposed by the Board in any financial year shall not exceed one per cent. of any income of the company for the year ending last before the beginning of that financial year which is income liable to the long term business levy.

3The Board may not impose a levy for the purpose of financing expenditure of any description unless—

(a)the expenditure in question has already been incurred by the Board; or

(b)it appears to the Board that the expenditure will be incurred within twelve months of the imposition of the levy.

Statements of premium incomeU.K.

[F14(1)The Secretary of State may by notice in writing require an authorised insurance company to send him a statement of—

(a)any income of the company for the year preceding that in which the notice is received by the company which is income liable to the general business levy, and

(b)any income of the company for that year which is income liable to the long term business levy.

(2)An authorised insurance company which receives a notice under this paragraph shall send the statement required by the notice to the Secretary of State within three months of receiving the notice.

(3)Where an authorised insurance company is required under this paragraph to send a statement to the Secretary of State in respect of income of both descriptions mentioned in sub-paragraph (1)(a) and (b) above it shall send a separate statement in respect of income of each description.]

Textual Amendments

Prospective

[F24AIn the application of this Schedule to a friendly society—

(a)paragraph 4 above shall have effect with the substitution for any reference to the [F3Treasury] of a reference to the Commission; and

(b)paragraph 9 below shall be omitted.]

Textual Amendments

F3Word in Sch. 3 para. 4A(a) substituted (5.1.1998) by S.I. 1997/2781, arts. 2(1), 8(1), Sch. Pt. II para. 98, 99 (with art. 7)

[F144AIn the application of this Schedule to a friendly society—

(a)paragraph 4 above shall have effect with the substitution for any reference to the Secretary of State of a reference to the Commission; and

(b)paragraph 9 below shall be omitted.]

Textual Amendments

Prospective

[F44B(1)Any person who causes or permits to be included in a statement sent to the Commission under paragraph 4 above as applied by this paragraph any information which he knows to be false in a material particular or recklessly causes or permits to be so included any information which is false in a material particular shall be guilty of an offence and liable—

(a)on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine, or to both;

(b)on summary conviction, to a fine not exceeding the statutory maximum.

(2)Any friendly society which makes default in complying with paragraph 4 above as so applied shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding level 5 on the standard scale.]

Textual Amendments

5(1)Any person who causes or permits to be included in a statement sent to the Secretary of State under paragraph 4 above any information which he knows to be false in a material particular or recklessly causes or permits to be so included any information which is false in a material particular shall be guilty of an offence and liable—

(a)on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine, or to both;

(b)on summary conviction, to a fine not exceeding £400.

(2)Any insurance company which makes default in complying with paragraph 4 above shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding [F5level 5 on the standard scale].

(3)[F6Sections 37(2)(b)(i) and 54(1)(b) of the Insurance Companies Act 1982] (failure to satisfy an obligation under that Act to be a ground for the exercise by the Secretary of State of certain powers in relation to an insurance company) shall have effect in relation to [F7an obligation imposed on an insurance company under paragraph 4] above as they have effect in relation to obligations imposed on an insurance company under that Act.

(4)[F8Sections 91 to 94 of the Insurance Companies Act 1982] shall apply in relation to an offence committed or alleged to have been committed under this paragraph as they apply in relation to an offence committed or alleged to have been committed under that Act.

(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F9

Textual Amendments

Declaration and enforcement of leviesU.K.

6(1)Subject to paragraphs 1 to 3 above, levies may be imposed by the Board under section 21 above at such times and at such rates in relation to income of authorised insurance companies liable to the general business levy or to the long term business levy as the Board may determine.

(2)On imposing a levy under section 21 above, the Board shall send notice of the rate of levy to every authorised insurance company which may in the opinion of the Board have had income liable to the levy for the year ending last before the financial year in which the levy is imposed.

(3)A notice under sub-paragraph (2) above shall indicate—

(a)whether the levy is a general business levy or a long term business levy;

(b)what description of income is income liable to the levy in question; and

(c)the purpose for which the levy is being imposed;

and shall specify the rate of the levy as a percentage of the income liable to the levy.

(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F10

Textual Amendments

7(1)An insurance company to which notice of the rate of a levy is sent under paragraph 6 above shall pay to the Board within one month of the date of the notice the percentage specified in the notice of any income of the company for the year ending last before the financial year in which the levy is imposed which is income liable to the levy in question.

(2)Any sum due to the Board in respect of a levy imposed under section 21 above shall be recoverable in any court of competent jurisdiction.

[F11Notices under paragraphs 4 and 6]U.K.

Textual Amendments

8A notice under paragraph 4 or 6 above may be sent by post, and a letter containing such a notice shall be deemed to be properly addressed if it is addressed to the insurance company to which it is sent at its last known place of business in the United Kingdom.

Prospective

[F128A(1)The [F13Treasury] may by regulations made by statutory instrument—

(a)make provision for the purpose of securing, in relation to a company which at any time—

(i)is an insurance company to which this Act applies, and

(ii)does not have any business establishment or other fixed establishment in the United Kingdom,

that another person is the company’s levy representative at that time, and

(b)make provision with respect to the functions of a person who is a company’s levy representative under paragraph (a) above.

(2)Regulations under paragraph (b) of sub-paragraph (1) above may, in particular, impose on a person who is a company’s levy representative under paragraph (a) of that sub-paragraph obligations and liabilities relating to the company’s obligations and liabilities under this Schedule.

(3)Regulations under this paragraph may contain such supplementary, incidental and consequential provisions as the [F13Treasury] thinks fit.

(4)In sub-paragraph (2) above, references to obligations include obligations enforceable under the criminal law and references to liabilities include criminal penalties.]

Textual Amendments

F12Sch. 3 para. 8A inserted (prosp.) by 1997 c. 18, ss. 7(12), 23(3) (which insertion was repealed (1.12.2001) by S.I. 2001/3649, arts. 1, 3(1)(a))

[F158A(1)The Secretary of State may by regulations made by statutory instrument—

(a)make provision for the purpose of securing, in relation to a company which at any time—

(i)is an insurance company to which this Act applies, and

(ii)does not have any business establishment or other fixed establishment in the United Kingdom,

that another person is the company’s levy representative at that time, and

(b)make provision with respect to the functions of a person who is a company’s levy representative under paragraph (a) above.

(2)Regulations under paragraph (b) of sub-paragraph (1) above may, in particular, impose on a person who is a company’s levy representative under paragraph (a) of that sub-paragraph obligations and liabilities relating to the company’s obligations and liabilities under this Schedule.

(3)Regulations under this paragraph may contain such supplementary, incidental and consequential provisions as the Secretary of State thinks fit.

(4)In sub-paragraph (2) above, references to obligations include obligations enforceable under the criminal law and references to liabilities include criminal penalties.]

Textual Amendments