PART XII SPECIAL CLASSES OF COMPANIES AND BUSINESSES

C1C2C3CHAPTER I INSURANCE COMPANIES, UNDERWRITERS AND CAPITAL REDEMPTION BUSINESS

Annotations:
Modifications etc. (not altering text)
C1

Definitions 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

C2

Pt. 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))

F1Miscellaneous provisions relating to life assurance business

Annotations:
Amendments (Textual)
F1

Cross-heading before s. 434 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(4) (with Sch. 8 para. 55(2))

439 Restricted government securities.

F21

For the purposes of this Chapter restricted government securities shall be treated as linked solely to pension business.

2

In this section“restricted government securities” means, subject to the following provisions of this section, government securities issued on the condition that, except in such circumstances as may be specified in the conditions of issue, they are to be held by insurance companies against and applied solely towards meeting pension business liabilities.

6

M1Subject to subsection (7) below, the following Treasury Stock, namely—

a

2 per cent. Index-linked Treasury Stock 1996;

b

2 per cent. Index-linked Treasury Stock 2006;

c

2 per cent. Index-linked Treasury Stock 2011;

are not restricted government securities for the purposes of this section.

7

If any of the index-linked stock referred to in subsection (6) above was on 27th March 1982 held by an insurance company against and applied solely towards meeting the liabilities of the company’s pension business, then—

a

M2if and so long as the stock continues to be so held by that company, it shall continue to be treated as restricted government securities for the purposes of this section; and

b

M3if the stock ceases to be restricted government securities otherwise than by virtue of being actually disposed of or redeemed, on the day on which it so ceases the stock shall be deemed for the purposes of corporation tax, including (subject to subsection (8)below) F3 corporation tax on chargeable gains, to have been disposed of and immediately re-acquired at its market value on that date.

8

M4For the purposes of sections 67and 68of the 1979Act (gilt-edged securities)—

a

in ascertaining the date on which securities were acquired, no account shall be taken of any deemed disposal and reacquisition resulting from subsection (7)(b)above; and

b

so long as any index-linked stock continues, by virtue of subsection (7)(a)above, to be treated as restricted government securities for the purposes of this section, it shall be regarded as being stock of a different kind from the index-linked stock referred to in subsection (6)above which is not so treated. F4