Income and Corporation Taxes Act 1988

438 Pension business: exemption from tax. U.K.

(1) M1 Exemption from corporation tax shall be allowed in respect of income from, and chargeable gains in respect of, investments and deposits of so much of an insurance company’s [F1 long-term insurance fund] as is referable [F2 (in accordance with section 432A)] to pension business.

(2) M2 The exemption from tax conferred by subsection (1) above shall not exclude any sums from being taken into account as receipts in computing profits or losses for any purpose of the Corporation Tax Acts.

(3) F3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F4 (3AA) F3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

[F5 (4) This section shall be disregarded in determining, in relation to an insurance company which is entitled to a tax credit in respect of a distribution, whether the condition in paragraph (a) or (b) of section 231(2) is satisfied.]

(5) F6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) F6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F7 (6A) F8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

[F9 (6B) F6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6C) F6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6D) F6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6E) F6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

(7) F6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) M3 Nothing in sections [F10 431B(2)(c)] or 643(2) of this Act or section [F11 271(1)(h) of the 1992 Act] shall be construed as affording relief in respect of any sums to be brought into account under this section.

[F12 (9) F13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F1 Words in s. 438(1) substituted (1.12.2001 with effect in accordance with art. 1(2)(a) of the amending S.I.) by The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629), art. 52(1)(e)

F2 Words in s. 438(1) inserted (22.7.2004) by Finance Act 2004 (c. 12), Sch. 7 para. 9(1)(a)

F3 S. 438(3)(3AA) repealed (with effect in accordance with Sch. 3 para. 6(7) of the repealing Act) by Finance (No. 2) Act 1997 (c. 58), Sch. 3 para. 6(2), Sch. 8 Pt. 2(6), Note

F4 S. 438(3AA) inserted (3.5.1994) by Finance Act 1994 (c. 9), Sch. 16 para. 6(2)

F5 S. 438(4) substituted (with effect in accordance with Sch. 3 para. 6(7) of the amending Act) by Finance (No. 2) Act 1997 (c. 58), Sch. 3 para. 6(3)

F6 S. 438(5)-(7) repealed (with effect in accordance with Sch. 3 para. 6(7)-(9) of the repealing Act) by Finance (No. 2) Act 1997 (c. 58), Sch. 3 para. 6(4)(5), Sch. 8 Pt. 2(6), Note (with Sch. 3 para. 13(17))

F7 1990 s.45(9).

F8 S. 438(5)-(7) repealed (with effect in accordance with Sch. 3 para. 6(7)(8), Sch. 8 Pt. 2(6) Note of the repealing Act) by Finance (No. 2) Act 1997 (c. 58), Sch. 3 para. 6(4)(5), Sch. 8 Pt. 2(6)

F9 S. 438(6B)-(6E) inserted (3.5.1994) by Finance Act 1994 (c. 9), Sch. 16 para. 6(4)

F10 Words in s. 438(8) substituted (with effect in accordance with Sch. 8 para. 57(1) of the amending Act) by Finance Act 1995 (c. 4), Sch. 8 para. 4(3) (with Sch. 8 para. 55(2))

F11 Words in s. 438(8) substituted (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. 289, 290(1), Sch. 10 para. 14(21) (with ss. 60, 101(1), 171, 201(3))

F12 S. 438(9) inserted (with effect in accordance with Sch. 8 para. 57(1) of the amending Act) by Finance Act 1995 (c. 4), Sch. 8 para. 28(2) (with Sch. 8 para. 55(2))

F13 S. 438(9) repealed (with effect in accordance with Sch. 3 para. 6(8) of the repealing Act) by Finance (No. 2) Act 1997 (c. 58), Sch. 3 para. 6(6), Sch. 8 Pt. 2(6), Note

Modifications etc. (not altering text)

C1 S. 438 amended (27.7.1993) by 1993 c. 34, s. 78(6)(11)

C2 S. 438 modified (3.5.1994) by Finance Act 1994 (c. 9), Sch. 18 para. 1(5)

C3 S. 438 modified (6.4.1999) by The Individual Savings Account (Insurance Companies) Regulations 1998 (S.I. 1998/1871), regs. 1, 5, 14 (and as substituted (22.8.2000) by The Individual Savings Account (Insurance Companies) (Amendment) Regulations 2000 (S.I. 2000/2075), regs. 1, 4)

C4 S. 438(1) modified (6.4.2005) by The Child Trust Funds (Insurance Companies) Regulations 2004 (S.I. 2004/2680), regs. 1, 4, 12; S.I. 2004/3369, art. 2(1)

Marginal Citations

M1 Source—1970 s.314(1); 1970(F) Sch.5 Part III 11(3), (6)(c)

M2 Source—1970 s.314(2)

M3 Source—1987 (No.2) s.39(3)