PART XII SPECIAL CLASSES OF COMPANIES AND BUSINESSES

CHAPTER I INSURANCE COMPANIES, UNDERWRITERS AND CAPITAL REDEMPTION BUSINESS

F2Separation of different categories of business

Annotations:
Amendments (Textual)
F2

Cross-heading before s. 432 inserted (with effect in accordance with Sch. 8 para. 57(1) of the amending Act) by Finance Act 1995 (c. 4), Sch. 8 para. 51(2) (with Sch. 8 para. 55(2))

F1C1432D Section 432B apportionment: value of non-participating funds.

C2C31

To the extent that the amount brought into account as the increase or decrease in the value of assets F11or as other income is attributable to assets F3linked to F4pension business, life reinsurance business, basic life assurance and general annuity business or F10long-term business other than life assurance business, or to assets of the overseas life assurance fund which are F3linked to overseas life assurance business, it shall be referable to the category of business concerned.

2

There shall be referable to any category of business the relevant fraction of the amount brought into account as the increase or decrease in the value of assets F11or as other income except so far as the amount is attributable to assets which are directly referable to F5any category of business.

F63

For the purposes of subsection (2) above “the relevant fraction”, in relation to a category of business, is the fraction of which—

a

the numerator is the mean of the opening and closing liabilities of the relevant business so far as referable to the category, reduced F7(but not below nil) by the mean of the opening and closing F8net values of any assets of the relevant business directly referable to the category; and

F9b

the denominator is the aggregate of—

i

the numerator given by paragraph (a) above; and

ii

the numerators given by that paragraph in relation to the other categories of business.

4

For the purposes of subsections (2) and (3) above, the part of the amount brought into account as the increase or decrease in the value of assets F11or as other income which is directly referable to a category of business is the part referable to the category by virtue of subsection (1) above and assets are directly referable to a category of business if such part of the amount brought into account as the increase or decrease in the value of assets F11or as other income as is attributable to them is so referable.