M1This section has effect for the interpretation of this Chapter.

M2Unless the context otherwise requires—

• “annuity business” means the business of granting annuities on human life;

• F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F5F15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F17“basic life assurance and general annuity business” has the meaning given by section 431F;

• “closing” and “opening”, in relation to a period of account, refer respectively to the position at the end and at the beginning of the period and, in relation to an accounting period, refer respectively to the position at the end and at the beginning of the period of account in which the accounting period falls;

• “closing liabilities” includes liabilities assumed at the end of the period of account concerned in consequence of the declaration of reversionary bonuses or a reduction in premiums;

• F6F33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F18“insurance company” means any company which is—

  1. a

     a company to which Part II of the M3Insurance Companies Act 1982 applies, or

  2. b

     an EC company carrying on insurance business through a branch or agency in the United Kingdom,

  and in this definition “EC company” and “insurance business” have the same meanings as in that Act of 1982;

• F7F35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “liabilities”, in relation to an insurance company, means the liabilities of the company estimated as for the purposes of its periodical return (excluding any that have fallen due or been reinsured and any not arising under or in connection with policies or contracts effected as part of the company’s insurance business);

• “life assurance business” includes annuity business;

• F19“life reinsurance business” has the meaning given by section 431C;

• F8F20“linked assets”, and related expressions, shall be construed in accordance with section 432ZA;

• “long term business” has the meaning given by section 1(1) of the Insurance Companies Act 1982;

• “long term business fund” means the fund maintained by an insurance company in respect of its long term business F31. . . ;

• F21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F9F32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F23“overseas life assurance business” has the meaning given by section 431D;

• “overseas life assurance fund” shall be construed in accordance with Schedule 19AA;

• “overseas life insurance company” means an insurance company F10not resident in the United Kingdom but carrying on life assurance business through a branch or agency in the United Kingdom; F24. . .

• F25“pension business” has the meaning given by section 431B;

• “periodical return”, in relation to an insurance company, means a return deposited with the F34Treasury under Part II of the Insurance Companies Act 1982.

• F26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F27“reinsurance business” includes retrocession business;

• F11F28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F12“value”, in relation to assets of an insurance company, means the value of the assets as taken into account for the purposes of the company’s periodical return;

• “with-profits liabilities” means liabilities in respect of policies or contracts under which the policy holders or annuitants are eligible to participate in surplus;

F29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

An insurance company may, in its company tax return for the first accounting period of the company beginning on or after 1 January 2008 in which any of the assets of the company's long-term insurance fund would (apart from this section) be foreign business assets, elect that none of the assets of the company's long-term insurance fund are to be regarded for the purposes of this Act as being foreign business assets.

The election has effect for that accounting period and all subsequent accounting periods of the company.

An election under subsection (1) is irrevocable.