F1F1F2SCHEDULE 19AC
F31
In its application to an overseas life insurance company this Act shall have effect with the following modifications.
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F42
F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F63
(1)
In subsection (2) of section 11, the following paragraphs shall be treated as inserted after paragraph (a)—
“(aa)
where section 11B applies for an accounting period, any trading or other income arising in that period from assets which by virtue of that section are attributed to the branch or agency at the time the income arises (but so that this paragraph shall not include distributions received from companies resident in the United Kingdom); and
(ab)
where section 11C applies for an accounting period, any trading or other income falling within section 11C(2) in that period (but so that this paragraph shall not include distributions received from companies resident in the United Kingdom); and”.
(2)
The following shall be treated as inserted after paragraph (b) of that subsection “and
(c)
chargeable gains accruing to the company on the disposal of assets of the company’s F7long-term insurance fund situated outside the United Kingdom and used or held for the purposes of the branch or agency immediately before the disposal; and
(d)
where section 11B applies for an accounting period, chargeable gains accruing to the company in that period on the disposal of assets which by virtue of that section are attributed to the branch or agency immediately before the disposal; and
(e)
where section 11C applies for an accounting period, chargeable gains accruing to the company in that period by virtue of section 11C(3).”
(3)
The following subsection shall be treated as inserted after that subsection—
“(2A)
For the purposes of subsection (2)(c) above—
(a)
section 275 of the 1992 Act (location of assets) shall apply as it applies for the purposes of that Act;
(b)
“ F7long-term insurance fund” has the meaning given by section 431(2).”
(4)
F8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F94
(1)
“11A“Overseas life insurance companies: interpretation of sections 11B and 11C.
(1)
For the purposes of this section and sections 11B and 11C—
(a)
an asset is at any time a section 11(2)(b) asset if, were it to be disposed of at that time, any chargeable gains accruing to the company on the disposal would form part of its chargeable profits for corporation tax purposes by virtue of section 11(2)(b);
(b)
an asset is at any time a section 11(2)(c) asset if, were it to be disposed of at that time, any chargeable gains accruing to the company on the disposal would form part of its chargeable profits for corporation tax purposes by virtue of section 11(2)(c);
(c)
relevant contracts and policies are contracts and policies the effecting of which constitutes the carrying on of life assurance business;
and in this section and those sections any expression to which a meaning is given by section 431(2) has that meaning.
(2)
For the purposes only of subsection (1)(a) and (b) above any enactment which—
(a)
limits any chargeable gain on the disposal of an asset;
(b)
treats any gain on the disposal of an asset as not being a chargeable gain; or
(c)
treats any disposal of an asset as not giving rise to a chargeable gain,
shall be disregarded.
(3)
For the purposes of sections 11B and 11C—
(a)
the notional value at any time is the value at that time of the assets which the branch or agency would reasonably be expected to hold at that time in consequence of any relevant contracts, and any relevant policies, which at that time are carried out at the branch or agency;
(b)
the section 11B value at any time is the value at that time of such of the section 11(2)(b) and section 11(2)(c) assets as are assets held at that time in consequence of any relevant contracts, and any relevant policies, which at that time are carried out at the branch or agency;
(c)
the section 11C value at any time is the value at that time of—
(i)
such of the section 11(2)(b) and section 11(2)(c) assets as are assets held at that time in consequence of any relevant contracts, and any relevant policies, which at that time are carried out at the branch or agency; and
(ii)
the assets which by virtue of section 11B are attributed to the branch or agency at that time;
(d)
a relevant fund is a fund of assets of the company (wherever those assets may be situated) any part of which is held in consequence of any relevant contracts, and any relevant policies, which at any time in the accounting period concerned are carried out at the branch or agency.
(4)
In applying subsection (3)(a) above as regards a particular time, it shall be assumed that—
(a)
at that time the branch or agency is a company resident in the United Kingdom, undertaking the activities it then actually undertakes;
(b)
the terms of any dealings between the branch or agency and another part of the company are not (or not necessarily) their actual terms but are such as would be the terms if the branch or agency and the other part of the company were independent persons dealing at arm’s length.
11BOverseas life insurance companies: attribution of assets.
(1)
This section applies for an accounting period where the mean of the notional value at the beginning and end of the accounting period exceeds the mean of the section 11B value at those times.
(2)
Where this section applies for an accounting period, assets shall be attributed to the branch or agency in that period in accordance with the following provisions of this section.
(3)
There shall be attributed to the branch or agency in the accounting period such of the qualifying assets of the company as (having regard to the excess mentioned in subsection (1) above) it is just and reasonable to attribute to the branch or agency.
(4)
For the purposes of subsection (3) above—
(a)
where an asset is a qualifying asset for the whole of the accounting period it may, subject to paragraphs (c) and (d) below, be attributed to the branch or the agency for the whole or any part or parts of that period;
(b)
where an asset is a qualifying asset for any portion of the accounting period it may, subject to paragraphs (c) and (d) below, be attributed to the branch or agency for the whole or any part or parts of that portion;
(c)
an asset shall not be attributed to the branch or agency for any period of time during which it is a section 11(2)(b) or section 11(2)(c) asset;
(d)
an asset shall not be attributed to the branch or agency at any particular time unless it is held in consequence of any relevant contracts, and any relevant policies, which at that time are carried out at the branch or agency.
(5)
An asset of the company is a qualifying asset at any time if it is an asset of one or more of the following descriptions, that is to say—
(a)
an asset which, in relation to any relevant contracts and any relevant policies which at that time are carried out at the branch or agency, is a linked asset within the meaning given by section 431(2);
(b)
an asset which at that time is maintained in the United Kingdom as a result of a requirement imposed under section F1043 of the Financial Services and Markets Act 2000 other than an asset not treated as so maintained under that requirement;
(c)
an asset which at that time is treated for the purposes of any such requirement as is mentioned in paragraph (b) above as maintained in the United Kingdom F11under that requirement;
(d)
an asset which at that time is held in respect of the business carried on by the branch or agency as a result of a condition of F12a direction under section 148 of the Financial Services and Markets Act 2000;
(e)
an asset which at that time is held in a fund which the company is required to maintain under the prudential legislation of a territory outside the United Kingdom in respect of the business carried on by the branch or agency;
(f)
an asset which is identified in tax returns submitted to a taxing authority of a territory outside the United Kingdom as an asset which at that time is wholly referable to the business carried on by the branch or agency.
11COverseas life insurance companies: additional income and gains.
(1)
This section applies for an accounting period where the mean of the notional value at the beginning and end of the accounting period exceeds the mean of the section 11C value at those times.
(2)
Where this section applies for an accounting period, the income which falls within this subsection in that period shall be the specified amount of each item of relevant income arising in that period from any assets of the relevant fund.
(3)
Where this section applies for an accounting period, the chargeable gains accruing to the company in that period by virtue of this subsection shall be the specified amount of each relevant gain accruing to the company in that period on the disposal of any assets of the relevant fund.
(4)
For the purposes of this section—
(a)
relevant income is income other than income which falls within section 11(2)(a) or (aa);
(b)
a relevant gain is a gain (other than a chargeable gain which falls within section 11(2)(b), (c) or (d)) which would be a chargeable gain if the company were resident in the United Kingdom.
(5)
For the purposes of this section the specified amount of an item of relevant income arising in the accounting period from any assets of the relevant fund shall be determined by the formula—
(6)
For the purposes of this section the specified amount of a relevant gain accruing to the company in the accounting period on the disposal of any assets of the relevant fund shall be determined by the formula—
(7)
In subsections (5) and (6) above—
SI is the specified amount of an item of relevant income arising in the accounting period from any assets of the relevant fund;
I is an item of relevant income arising in that period from any assets of the relevant fund;
NV is the mean of the notional value at the beginning and end of that period;
CV is the mean of the section 11C value at the beginning and end of that period;
RF (subject to subsection (8) below) is the mean of the value of the relevant fund at the beginning and end of that period;
SG is the specified amount of a relevant gain accruing to the company in that period on the disposal of any assets of the relevant fund;
G is a relevant gain accruing to the company in that period on the disposal of any assets of the relevant fund.
(8)
Where the assets of the relevant fund at the beginning or end of the accounting period include—
(a)
section 11(2)(b) or section 11(2)(c) assets; or
(b)
assets which by virtue of section 11B are attributed to the branch or agency,
the value at that time of the relevant fund for the purposes of the definition of RF in subsection (7) above shall be reduced by the value at that time of those assets.
(9)
Where in the accounting period the company has more than one relevant fund—
(a)
in the definition of RF in subsection (7) above, the reference to the value of the relevant fund shall be treated as a reference to the value of the relevant funds; and
(b)
any other reference in this section to the relevant fund shall be treated as a reference to the relevant funds.””
(2)
F13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4A
(1)
In section 12(7A), the reference to F14an insurance business transfer scheme shall be treated as including a reference to a qualifying overseas transfer.
(2)
In this paragraph “a qualifying overseas transfer” means so much of any transfer of the whole or any part of the business of an overseas life insurance company carried on through a branch or agency in the United Kingdom as takes place in accordance with any authorisation granted outside the United Kingdom for the purposes of Article 11 of the third F15life insurance Directive.
F16(3)
In sub-paragraph (2) above, “the third life insurance directive” means the Council Directive of 10th November 1992 on the co-ordination of laws, regulations and administrative provisions relating to direct life assurance and amending Directives 79/267/EEC and 90/619/EEC (No.92/96/EEC) M1.
F17F185
“(3A)
In its application to an overseas life insurance company subsection (3) shall have effect as if—
(a)
in a case where the company is not an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to the Financial Services and Markets Act 2000, the reference to the Form 40 (revenue account) were a reference to the Form 40 relating only to the long-term business carried on by it at a permanent establishment in the UK, and
(b)
in a case where it is an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to the Financial Services and Markets Act 2000, the reference to “expenses brought into account in line 12, 22 or 25 of Form 40 in the periodical return of the company for a period of account” were a reference to so much of the expenses included in Item II.8 or 9(a) of the Profit and Loss account included in accounts drawn up in accordance with the Council Directive of 19th December 1991 on the annual accounts and consolidated accounts of insurance undertakings (No.91/674/EEC) as are attributable to permanent establishment in the United Kingdom through which the company carries on life assurance business.”.
5ZA
“(11A)
In subsection (11) the reference in paragraph (a) of the definition of “the relevant income” to income and gains shall be treated as a reference to so much of the income and gains mentioned in that paragraph as falls to be attributed, for the purposes of section 11AA(2) F19, to the permanent establishment in the United Kingdom through which the company carries on life assurance business.
(11B)
In that subsection the reference in paragraph (b) of that definition to distributions shall be treated as a reference to so much of the distributions mentioned in that paragraph as falls to be attributed, for the purposes of section 11AA(2), to the permanent establishment in the United Kingdom through which the company carries on life assurance business.”.
5A
(1)
Where an overseas life insurance company receives a qualifying distribution made by a company resident in the United Kingdom and the distribution (or part of the distribution)—
(a)
would fall within paragraph (a), (aa) or (ab) of section 11(2) but for the exclusion contained in that paragraph, and
(b)
is referable to life assurance business, but not to overseas life assurance business,
then the recipient shall be treated for the purposes of the Corporation Tax Acts as entitled to such a tax credit in respect of the distribution (or part of the distribution) as it would be entitled to under section 231 if it were resident in the United Kingdom.
(2)
Where part only of a qualifying distribution would fall within paragraph (ab) of section 11(2) but for the exclusion contained in that paragraph, the tax credit to which the recipient shall be treated as entitled by virtue of sub-paragraph (1) above is the proportionate part of the tax credit to which the recipient would be so treated as entitled in respect of the whole of the distribution.
F20(3)
Nothing in this paragraph shall be taken to confer on an overseas life insurance company any entitlement to make a claim under section 231(3).
5B
(1)
F21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)
F21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)
F21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)
In this paragraph “UK distribution income” means income of an overseas life insurance company which consists of a distribution (or part of a distribution) in respect of which the company is entitled to a tax credit (and which accordingly represents income equal to the aggregate of the amount or value of the distribution (or part) and the amount of that credit).
5C
(1)
This paragraph applies to income from the investments of an overseas life insurance company attributable to the basic life assurance and general annuity business of the branch or agency in the United Kingdom through which the company carries on life assurance business.
F22(2)
Where, in computing the income to which this paragraph applies, any profits and gains arising from a FOTRA security, or from any loan relationship represented by it, are excluded by virtue of the tax exemption condition of that security, the amount which by virtue of section 76 is to be deductible by way of management expenses shall be reduced in accordance with sub-paragraph (3) below.
(3)
That amount shall be reduced so that it bears to the amount which would be deductible apart from this sub-paragraph the same proportion as the amount of the income to which this paragraph applies (after applying the provisions of section 154(2) to (7) of the Finance Act 1996) bears to what would be the amount of that income if the tax exemption condition were disregarded.
(4)
Subsection (8) of section 154 of the Finance Act 1996 (meaning of “FOTRA security” and “tax exemption condition”) shall apply for the purposes of this paragraph as it applies for the purposes of that section.
F236
(1)
In subsection (2) of section 431, the following definition shall be treated as substituted for the definition of “investment reserve”—
“ “investment reserve”, in relation to an overseas life insurance company, means the excess of the value of the relevant assets over the relevant liabilities, and for the purposes of this definition—
- (a)
relevant assets are such assets of the company’s F24long-term insurance fund as are—
- (i)
section 11(2)(b) assets;
- (ii)
section 11(2)(c) assets; or
- (iii)
assets which by virtue of section 11B are attributed to the branch or agency in the United Kingdom through which the company carries on life assurance business; and
- (b)
relevant liabilities are such liabilities of the F25long-term business as are attributable to the branch or agency;
and in a case where section 11C applies, the value of the relevant assets shall be increased by the amount by which the notional value exceeds the section 11C value; and any expression used in this definition to which a meaning is given by section 11A has that meaning;.”
(2)
In that subsection, the following definition shall be treated as substituted for the definition of “liabilities”—
“ “liabilities”, where the company concerned is an overseas life insurance company, does not include excluded liabilities and (subject to that) means—
- (a)
liabilities as estimated for the purposes of the company’s periodical return, or
- (b)
in the case of liabilities not estimated for the purposes of such a periodical return, liabilities as estimated for the purposes of any return equivalent to a periodical return and required to be made by the company under the law of the territory in which the company is resident, or
- (c)
in the case of liabilities not estimated for the purposes of such a periodical return or equivalent return, liabilities as found from the company’s records;
and excluded liabilities are any liabilities 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;”.
(3)
F26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)
F26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F27(4A)
In that subsection the following definition shall be inserted at the appropriate place—
“UK distribution income” has the meaning given by paragraph 5B(4) of Schedule 19AC;
(5)
In that subsection, the following definition shall be treated as substituted for the definition of “value” —
“ “value”, in relation to assets and where the company concerned is an overseas life insurance company, means—
- (a)
their value as taken into account for the purposes of the company’s periodical return, or
- (b)
where their value is not taken into account for the purposes of such a periodical return, their value as taken into account for the purposes of any return equivalent to a periodical return and required to be made by the company under the law of the territory in which the company is resident, or
- (c)
where their value is not taken into account for the purposes of such a periodical return or equivalent return, their value as found from the company’s records;
and the reference in paragraph (c) above to the value of assets as found from the company’s records is a reference to the market value as so found or, where applicable, the current value (within the meaning of the Directive of the Council of the European Communities dated 19th December 1991 No. 91/674/EEC (directive on the annual accounts and consolidated accounts of insurance undertakings)) as so found;”.
F28(6)
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6A
In section 431D(1), the words “carried on through a branch or agency in the United Kingdom by an overseas life insurance company” shall be treated as inserted after the words “means life assurance business”.
F29F307
(1)
Section 432A has effect as if the references in subsections (3), (6) and (8) to assets were to such of the assets concerned as are—
(a)
section 11(2)(b) assets,
(b)
section 11(2)(c) assets, or
(c)
assets which by virtue of section 11B are attributed to the branch or agency in the United Kingdom through which the company carries on life assurance business;
and as if the references in subsections (6) and (8) to liabilities were to such of the liabilities concerned as are attributable to the branch or agency.
Expressions used in this sub-paragraph to which a meaning is given by section 11A have that meaning.
(2)
For the purposes of section 432A as it applies in relation to an overseas life insurance company, income which falls within section 11(2)(aa) or (ab), and chargeable gains or allowable losses which fall within section 11(2)(d) or (e)—
(a)
shall not be referable to F31long-term business other than life assurance business; and
(b)
shall be apportioned under subsections (5) and (6) of that section separately from other income, gains and losses.
(3)
For the purposes of the application of section 432A(6) in relation to such income, gains or losses as are mentioned in sub-paragraph (2) above—
(a)
“liabilities” does not includes liabilities of the F31long-term business other than life assurance business;
(b)
(c)
F33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F348
(1)
(2)
The following words shall be treated as inserted at the end of subsection (2) of that section “
; but this subsection shall not apply for a period of account in relation to which F37any provision of paragraph 1C of Schedule 8A to the Finance Act 1989 applies.
”
F38(3)
Subsection (3) of section 432B shall have effect as if after the words “with which an account is concerned” there were inserted the words “or in respect of which items are treated as brought into account by virtue of paragraph 1C of Schedule 8A to the Finance Act 1989”; and that subsection and sections 432C to 432E shall have effect as if the reference to relevant business were to relevant business of the branch or agency in the United Kingdom through which the company carries on life assurance business.
(4)
F39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F409
F41(1)
In section 434, the following subsections shall be treated as inserted after subsection (1B)—
“(1C)
The exclusion from section 11(2)(a), (aa) or (ab) of distributions received from companies resident in the United Kingdom shall not apply in relation to—
(a)
the charge to corporation tax on the life assurance profits of an overseas life insurance company computed in accordance with the provisions of this Act applicable to Case I of Schedule D; or
(b)
any computation of such profits in accordance with those provisions.
(1D)
Paragraph 2 of Schedule F shall not have effect for the purposes of subsection (1C)(a) or (b) above, F42but this subsection shall not apply in relation to distributions in respect of which an overseas life insurance company is entitled to a tax credit under section 441A.
(1E)
The reference in subsection (1C) above to the life assurance profits of an overseas life insurance company is a reference to the profits of the company—
(a)
in respect of its life assurance business; or
(b)
in respect of any category of life assurance business which it carries on.”
(2)
F43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)
F43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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9A
F44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9B
“434AA Treatment of annuities.
An overseas life insurance company shall not be entitled to treat as paid out of profits or gains brought into charge to income tax any part of the annuities paid by the company which is referable to its life assurance business.”
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9C
F46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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10
F47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10A
F48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10AA
In section 440(2)(a), the reference to F49an insurance business transfer scheme shall be treated as including a reference to a qualifying overseas transfer (within the meaning of paragraph 4A above).
10B
(1)
Where the company mentioned in section 440(1) is an overseas life insurance company, section 440 has effect with the following modifications.
(2)
Subsection (4) shall be treated as if—
(a)
in paragraphs (a), (b), (d), (e) and (f) the words “UK assets” were substituted for the words “assets”; and
(b)
at the end there were inserted—
”(g)
section 11C assets;
(h)
non-UK assets.”.
F50(2A)
“(4AA)
F51Section 13 of the Capital Allowances Act (use for qualifying activity of plant or machinery provided for other purposes) shall apply in relation to any case in which an asset or part of an asset held by an overseas life insurance company—
(a)
ceases to be within the category set out in paragraph (h) of subsection (4) above; and
(b)
at the same time comes within another of the categories set out in that subsection..”
(3)
The following subsection shall be treated as inserted at the end of the section—
”(7)
For the purposes of this section—
(a)
UK assets are—
(i)
section 11(2)(b) assets;
(ii)
section 11(2)(c) assets; or
(iii)
assets which by virtue of section 11B are attributed to the branch or agency in the United Kingdom through which the company carries on life assurance business;
(b)
section 11C assets are assets—
(i)
(in a case where section 11C (other than subsection (9)) applies) of the relevant fund, other than UK assets; or
(ii)
(in a case where that section including that subsection applies) of the relevant funds, other than UK assets;
(c)
non-UK assets are assets which are not UK assets or section 11C assets;
and any expression used in this subsection to which a meaning is given by section 11A has that meaning.”.
(4)
Where one of the companies mentioned in section 440(2) is an overseas life insurance company, section 440(2)(b) shall have effect as if for the words “is within another of those categories” there were substituted “is not within the corresponding category”.
(5)
Where the transferor company mentioned in section 440(2) is an overseas life insurance company, section 440 shall have effect, as regards the time immediately before the acquisition, with the modifications in sub-paragraphs (2) and (3) above.
(6)
Where the acquiring company mentioned in section 440(2) is an overseas life insurance company, section 440 shall have effect, as regards the time immediately after the acquisition, with the modifications in sub-paragraphs (2) and (3) above.
10C
(1)
In section 440B the following subsection shall be treated as substituted for subsection (3)—
”(3)
Section 440(1) and (2) have effect as if the only categories specified in subsection (4) of that section were—
(a)
UK assets of the F52long-term insurance fund,
(b)
other UK assets,
(c)
section 11C assets, and
(d)
non-UK assets,
(those expressions having the meanings given by section 440(7)).”.
(2)
The following subsection shall be treated as substituted for subsection (4) of that section—
”(4)
Section 440A applies as if for paragraphs (a) to (e) of subsection (2) there were substituted—
”(a)
so many of the UK securities as are identified in the company’s records as securities by reference to the value of which there are to be determined benefits provided for under policies or contracts the effecting of all (or all but an insignificant proportion) of which constitutes the carrying on of F53long-term business, shall be treated for the purposes of corporation tax as a separate holding linked solely to that business,
(b)
any remaining UK securities shall be treated for those purposes as a separate holding which is not of the description mentioned in the preceding paragraph,
(c)
the section 11C securities shall be treated for those purposes as a separate holding which is not of any of the descriptions mentioned in the preceding paragraphs, and
(d)
the non-UK securities shall be treated for those purposes as a separate holding which is not of any of the descriptions mentioned in the preceding paragraphs.”.
F5411
F55(1)
In section 440A(2), in paragraph (a) the words “UK securities” shall be treated as substituted for the word “securities” in the first place where it occurs.
(2)
F56. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)
In paragraphs (d) and (e) of that subsection, the words “UK securities”shall be treated as substituted for the word “securities”
(4)
The following paragraphs shall be treated as inserted at the end of that subsection—
“(f)
the section 11C securities shall be treated for those purposes as a separate holding which is not of any of the descriptions mentioned in the preceding paragraphs; and
(g)
the non-UK securities shall be treated for those purposes as a separate holding which is not of any of the descriptions mentioned in the preceding paragraphs.”
(5)
The following subsection shall be treated as inserted after subsection (6) of that section—
F57“(6A)
For the purposes of this section—
(a)
UK securities are such securities as are—
(i)
section 11(2)(b) assets;
(ii)
section 11(2)(c) assets; or
(iii)
assets which by virtue of section 11B are attributed to the branch or agency in the United Kingdom through which the company carries on life assurance business;
(b)
section 11C securities are securities—
(i)
(in a case where section 11C (other than subsection (9)) applies) which are assets of the relevant fund, other than UK securities; or
(ii)
(in a case where that section including that subsection applies) which are assets of the relevant funds, other than UK securities;
(c)
non-UK securities are securities which are not UK securities or section 11C securities;
and any expression used in this subsection to which a meaning is given by section 11A has that meaning.”
F58(6)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11A
(1)
F59. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)
F60. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11B
In section 442A the following subsection shall be treated as inserted after subsection (6)—
”(7)
In the case of an overseas life insurance company, the investment return treated as accruing under this section in any accounting period in relation to a policy or contract shall be treated as chargeable profits within section 11(2) of the Taxes Act 1988 where the policy or contract is one which in that accounting period gives rise, or but for the reinsurance arrangement would give rise, to such profits.”.
11C
In sections 444A(1) and 460(10A), the references to F61an insurance business transfer scheme shall be treated as including references to a qualifying overseas transfer (within the meaning of paragraph 4A above).
F6212
(1)
F63. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)
F64. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F6513
(1)
F66. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)
The following F67subsection shall be treated as inserted after subsection (2) of section 794—
“(3)
F68. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)
In relation to any item of income falling within section 11(2)(ab), or any chargeable gain falling within section 11(2)(e), the reference in F69subsection (2)(bb) above to tax paid shall be construed as a reference to that part of the tax paid which bears to the whole of the tax paid the same proportion as that item of income, or that chargeable gain, bears to the relevant income, or relevant gain, by reference to which that item of income, or that chargeable gain, is, by virtue of section 11C, calculated; and, in relation to any such item of income or any such chargeable gain, the reference in section 790(4) to tax paid shall be construed accordingly.”
(3)
F70. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F7114
(1)
In subsection (1) of section 811, the words “subsections (1A) and (2)”shall be treated as substituted for the words “subsection (2)”.
(2)
The following subsection shall be treated as inserted after that subsection—
“(1A)
In relation to any item of income falling within section 11(2)(ab), the reference in subsection (1) above to any sum which has been paid in respect of tax on that income shall be construed as a reference to the part of that sum which bears to the whole of that sum the same proportion as that item of income bears to the relevant income by reference to which that item of income is, by virtue of section 11C, calculated.”
(3)
F72. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14A
(1)
In Schedule 19AA, paragraph 5(5)(c) (and the reference to it in paragraph 2(3) of that Schedule) shall be treated as omitted.
(2)
The following paragraph shall be treated as inserted at the end of that Schedule—
“6
In its application to an overseas life insurance company this Schedule shall have effect as if—
(a)
the references in paragraphs 2 and 3 to assets of the F73long-term insurance fund were to such of the assets as are—
(i)
section 11(2)(b) assets;
(ii)
section 11(2)(c) assets; or
(iii)
assets which by virtue of section 11B are attributed to the branch or agency in the United Kingdom through which the company carries on life assurance business;F74. . .
(b)
(c)
the references in paragraph 4 to any liabilities of the company’s F73long-term insurance fund which represent a money debt were to any such of those liabilities as are attributable to the branch or agency;
and any expression used in this paragraph to which a meaning is given by section 11A has that meaning..”
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F7715
F78. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .