PART XIIU.K. SPECIAL CLASSES OF COMPANIES AND BUSINESSES

CHAPTER IU.K. INSURANCE COMPANIES, UNDERWRITERS AND CAPITAL REDEMPTION BUSINESS

Modifications etc. (not altering text)

C1Definitions in Pt. XII Chapter I (ss. 431-458) applied by Finance Act 1991 (c. 31, SIF 63:1), s. 48, Sch. 7 paras. 16(7), 18

C2Pt. XII Chapter I (ss. 431-458) applied (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 212(7)(b), 289 (with ss. 60, 101(1), 171, 201(3))

[F1Classes of life assurance business]U.K.

Textual Amendments

F1Ss. 431B-431F and cross-heading inserted (with effect in accordance with Sch. 8 paras. 55, 57 of the amending Act) by Finance Act 1995 (c. 4), Sch. 8 para. 2

431D Meaning of “overseas life assurance business”.U.K.

(1)In this Chapter “overseas life assurance business” means life assurance business, other than pension business or life reinsurance business, which—

(a)in the case of life assurance business other than reinsurance business, is business with a policy holder or annuitant not residing in the United Kingdom, and

(b)in the case of reinsurance business, is—

(i)reinsurance of life assurance business with a policy holder or annuitant not residing in the United Kingdom, or

(ii)reinsurance of business within sub-paragraph (i) above or this sub-paragraph.

(2)Subject to subsections (5) and (7) below, in subsection (1) above the references to life assurance business with a policy holder or annuitant do not include life assurance business with a person who is an individual if—

(a)the policy holder or annuitant is not beneficially entitled to the rights conferred by the policy or contract for the business, or

(b)any benefits under the policy or contract for the business are or will be payable to a person other than the policy holder or annuitant (or his personal representatives) or to a number of persons not including him (or them).

(3)For the purposes of subsection (2) above any nomination by a policy holder or annuitant of an individual or individuals as the recipient or recipients of benefits payable on death shall be disregarded.

(4)Subject to subsections (5) and (7) below, in subsection (1) above the references to life assurance business with a policy holder or annuitant do not include life assurance business with a person who is not an individual.

(5)Subsections (2) and (4) above do not apply if—

(a)the rights conferred by the policy or contract for the business are held subject to a trust,

(b)the settlor does not reside in the United Kingdom, and

(c)each beneficiary is either an individual not residing in the United Kingdom or a charity.

(6)In subsection (5) above—

(a)“settlor” means the person, or (where more than one) each of the persons, by whom the trust was directly or indirectly created (and for this purpose a person shall, in particular, be regarded as having created the trust if he provided or undertook to provide funds directly or indirectly for the purposes of the trust or made with any other person a reciprocal arrangement for that other person to create the trust),

(b)“beneficiary” means any person who is, or will or may become, entitled to any benefit under the trust (including any person who may become so entitled on the exercise of a discretion by the trustees of the trust), and

(c)“charity” means a person or body of persons established for charitable purposes only;

and for the purpose of that subsection an individual who is a trustee (of any trust) shall not be regarded as an individual.

(7)Subsections (2) and (4) above do not apply if the policy or contract for the business was effected solely to provide benefits for or in respect of—

(a)persons all, or all but an insignificant number, of whom are relevant overseas employees, or

(b)spouses, widows, widowers, children or dependants of such persons.

(8)In subsection (7) above “relevant overseas employees” means persons who are not residing in the United Kingdom and are—

(a)employees of the policy holder or annuitant,

(b)employees of a person connected with the policy holder or annuitant, or

(c)employees in respect of whose employment there is established a superannuation fund to which section 615(3) applies;

and section 839 applies for the purposes of this subsection.

Modifications etc. (not altering text)

C4S. 431D(2)-(8) excluded (with effect in accordance with Sch. 8 para. 57(1) of the amending Act) by Finance Act 1995 (c. 4), Sch. 8 para. 55(2)(3),