Income and Corporation Taxes Act 1988

632 Establishment of schemes. U.K.

M1 (1) The Board shall not approve a personal pension scheme established by any person other than—

(a) a person who is authorised under Chapter III of Part I of the M2 Financial Services Act 1986 to carry on investment business and who carries on business of a kind mentioned in subsection (2) below;

[F1 (aa) an EC company which—

(i) lawfully carries on long term business in the United Kingdom, or

(ii) lawfully provides long term insurance in the United Kingdom;]

(b) a building society within the meaning of the M3 Building Societies Act 1986;

[F2 (bb) a pension company within the meaning of the M4 Building Societies (Designation of Pension Companies) Order 1987 which is an associate of a building society within the meaning of section 18(17) of the Building Societies Act 1986;]

(c) an institution authorised under the M5 Banking Act 1987;

[F2 (cc) a body corporate which is a subsidiary or holding company of an institution authorised under the Banking Act 1987, or is a subsidiary of the holding company of such an institution;]

(d) a recognised bank or licensed institution within the meaning of the M6 Banking Act 1979.

[F3 (e) an institution which—

(i) is a European institution within the meaning of regulation 3(1) of the Banking Coordination (Second Council Directive) Regulations 1992 M7 , and

(ii) in conformity with the conditions and requirements of those Regulations, carries on in the United Kingdom, through a branch established in the United Kingdom for that purpose, or by the provision of services, any activity falling within item 1, 7 or 11 of the list of activities contained in Schedule 1 to those Regulations.]

(2) The kinds of business referred to in subsection (1)(a) above are—

(a) issuing insurance policies or annuity contracts;

(b) managing unit trust schemes authorised under section 78(1) of the Financial Services Act 1986.

[F4 (2ZA) For the purposes of subsection (1)(aa) above an EC company—

(a) lawfully carries on long term business in the United Kingdom if it does so through a branch in respect of which such of the requirements of Part I of Schedule 2F to the Insurance Companies Act 1982 M8 as are applicable have been complied with;

(b) lawfully provides long term insurance in the United Kingdom if such of those requirements as are applicable have been complied with in respect of the insurance.]

[F5 (2A) In subsection 1(cc) above “holding company” and “subsidiary” are to be construed in accordance with section 736 of the M9 Companies Act 1985 or Article 4 of the M10 Companies (Northern Ireland) Order 1986.]

[F6 (2B) For the purposes of this section—

(a) references to an EC company shall be construed in accordance with section 2(6) of the Insurance Companies Act 1982;

(b) references to long term business shall be construed in accordance with section 1(1) of that Act;

(c) references to the provision of long term insurance in the United Kingdom shall be construed in accordance with section 96A(3A) of that Act.]

(3) Subsection (1) above shall not apply in relation to a scheme approved by the Board by virtue of section 620(5) if it was established before [F7 1st July] 1988.

(4) The Treasury may by order amend this section as it has effect for the time being.

Textual Amendments

F1 S. 632(1)(aa) inserted (24.10.1997) by The Personal Pension Schemes (Establishment of Schemes) Order 1997 (S.I. 1997/2388), arts. 1, 3(a)

F2 S.I. 1988 No.993

F3 S. 632(1)(e) added (24.10.1997) by The Personal Pension Schemes (Establishment of Schemes) Order 1997 (S.I. 1997/2388), arts. 1, 3(b)

F4 S. 632(2ZA) inserted (24.10.1997) by The Personal Pension Schemes (Establishment of Schemes) Order 1997 (S.I. 1997/2388), arts. 1, 4

F5 S.I. 1988 No.993

F6 S. 632(2B) inserted (24.10.1997) by The Personal Pension Schemes (Establishment of Schemes) Order 1997 (S.I. 1997/2388), arts. 1, 5

F7 1988(F) s.54(2)(a)—deemed always to have had effect. Previously

“4th January”.

Marginal Citations

M1 Source-1987 (No.2) s.20

M2 1986 c. 60.

M3 1986 c. 53.

M4 S.I. 1987 No.1871

M5 1987 c. 22.

M6 1979 c. 37.

M7 S.I. 1992/3218.

M8 1982 c. 50. Schedule 2F was inserted by regulation 45 of, and Schedule 6 to, S.I. 1994/1696.

M9 1985 c.6

M10 S.I. 1986 No.1032.