Part III Income Tax, Corporation Tax and Capital Gains Tax

Chapter I General

Underwriters

58 Assessment and collection.

(1)

For subsection (2) of section 450 of the Taxes Act 1988 (underwriters) there shall be substituted—

“(2)

The aggregate for any year of assessment of—

(a)

the profits or gains arising to a member from his underwriting business; and

(b)

the profits or gains arising to him from assets forming part of a premiums trust fund,

shall be chargeable to tax under Case I of Schedule D; but nothing in this subsection shall affect the manner in which the amount of those profits or gains is to be computed.

(2A)

Schedule 19A shall have effect with respect to the assessment and collection of tax charged under Case I of Schedule D in accordance with this section.”

(2)

Section 39 of the M1Finance Act 1973 shall be renumbered as subsection (1) of that section and after that provision as so renumbered there shall be inserted—

“(2)

Schedule 16A to this Act shall have effect with respect to the assessment and collection of tax charged under Case I of Schedule D in accordance with Schedule 16 to this Act.”

(3)

In Schedule 16 to that Act (underwriters)—

(a)

the subsection (2) set out in subsection (1) above shall be inserted after paragraph 2 as paragraph 2A; and

(b)

paragraph 16 (assessment on agent) shall cease to have effect.

(4)

The provisions set out in Schedule 5 to this Act shall be inserted—

(a)

after Schedule 19 to the Taxes Act 1988 as Schedule 19A; and

(b)

after Schedule 16 to the Finance Act 1973 as Schedule 16A.

(5)

Subsections (1) and (4)(a) above shall have effect for the year1988-89 and subsequent years of assessment; and subsections (2), (3) and (4)(b) above shall have effect for the years 1986-87 and 1987-88.