SCHEDULES
F20SCHEDULE 8A Modification of sections 83 F21to 83A and 89 in relation to overseas life insurance companies
Words in Heading to Sch. 8A inserted (29.4.1996) by 1996 c. 8, s. 163, Sch. 31 para. 8(2)
F11
1
In their application to an overseas life insurance company F2sections 83 to 83A of this Act shall have effect with the modifications specified in paragraphs 1A to 1C below.
2
In those paragraphs—
a
any reference to the Taxes Act 1988 is a reference to that Act as it has effect in relation to such a company by virtue of Schedule 19AC to that Act; and
b
any expression to which a meaning is given by section 11A of that Act has that meaning.
F31A
1
The reference in section 83(2)(a) to investment income shall be construed as a reference to such of the income concerned as is attributable to the branch or agency in the United Kingdom through which the company carries on life assurance business.
2
The reference to assets in section 83(2)(b) (as it applies apart from subsection (3) of that section) shall be construed as a reference to such of the assets concerned—
a
as are—
i
section 11(2)(b) assets;
ii
section 11(2)(c) assets; or
iii
assets which by virtue of section 11B of the Taxes Act 1988 are attributed to the branch or agency; or
b
as are assets—
i
(in a case where section 11C of that Act (other than subsection (9)) applies) of the relevant fund, or
ii
(in a case where that section including that subsection applies) of the relevant funds,
other than assets which fall within paragraph (a) above.
3
In determining for the purposes of section 83(2) (as it applies apart from subsection (3) of that section) whether there has been any increase or reduction in the value (whether realised or not) of assets—
a
no regard shall be had to any period of time during which an asset held by the company does not fall within paragraph (a) or (b) of sub-paragraph (2) above; and
b
in the case of an asset which falls within paragraph (b) of that sub-paragraph, only the specified portion of any increase or reduction in the value of the asset shall be taken into account.
For the purposes of paragraph (b) above the specified portion of any increase or reduction in the value of an asset is found by applying to that increase or reduction the same fraction as would, by virtue of section 11C of the Taxes Act 1988, be applied to any relevant gain accruing to the company on the disposal of the asset.
4
For the reference in section 83(3) to any amount F4being added to the company’s F5long-term insurance fund, there shall be substituted a reference to assets becoming assets of the F5long-term insurance fund used or held for the purposes of the company’s United Kingdom branch or agency, having immediately previously been held by the company otherwise than as assets of that fund or used or held otherwise than for those purposes.
The amount of the increase in value under section 83(2)(b), as it applies in relation to such a F6an addition, shall be taken to be an amount equal to the value of the assets F6added.
F75
Any reference in section 83AA(2), (3) or (4) or 83AB(1) or (3) to an amount being added to the relevant company’s F5long-term insurance fund shall be construed in accordance with sub-paragraph (4) above.
F81B
F91
The references in section 83A to the company’s F10long-term business shall be construed as references to the whole of that business or to the whole of that business other than business in respect of which preparation of a revenue account for the purposes of F11Chapter 9 of the Prudential Sourcebook (Insurers) is not required.
F122
In sub-paragraph (1) “the Prudential Sourcebook (Insurers)” means the Interim Prudential Sourcebook for Insurers made by the Financial Services Authority under the Financial Services and Markets Act 2000.
F131C
1
Where for a period of account any investment income referred to in section 83(2)(a) is not otherwise brought into account within the meaning of that section, it shall be treated as brought into account for the period if it arises in the period.
2
Where for a period of account any increase in value referred to in section 83(2)(b) (as it applies apart from subsection (3) of that section) is not otherwise brought into account within the meaning of that section, it shall be treated as brought into account for the period if it is shown in the company’s records as available to fund one or both of the following for the period, namely, bonuses to policy holders and dividends to shareholders.
3
Where for a period of account any reduction in value referred to in section 83(2) (as it applies apart from subsection (3) of that section) is not otherwise brought into account within the meaning of that section, it shall be treated as brought into account for the period if it is shown in the company’s records as reducing sums available to fund one or both of the following for the period, namely, bonuses to policy holders and dividends to shareholders.
4
Where in any period of account any such F14addition is made as is mentioned in section 83(3) which is not otherwise brought into account within the meaning of that section, it shall be treated as brought into account for the period in which it is made.
F152
1
In its application to an overseas life insurance company section 89 of this Act shall have effect with the following modifications; and in those modifications any reference to the Taxes Act 1988 is a reference to that Act as it has effect in relation to such a company by virtue of Schedule 19AC to that Act.
2
Any reference to franked investment income shall be treated as a reference to UK distribution income (as defined by F16paragraph 5B(4) of that Schedule).
3
Any reference in subsection (5)(a) to income shall be construed as a reference to such of the income concerned as is attributable to the branch or agency in the United Kingdom through which the company carries on life assurance business.
4
The reference in subsection (5)(b) to assets shall be construed as a reference to such of the assets concerned—
a
as are—
i
section 11(2)(b) assets;
ii
section 11(2)(c) assets; or
iii
assets which by virtue of section 11B of the Taxes Act 1988 are attributed to the branch or agency; or
b
as are assets—
i
(in a case where section 11C of that Act (other than subsection (9)) applies) of the relevant fund, or
ii
(in a case where that section including that subsection applies) of the relevant funds,
other than assets which fall within paragraph (a) above.
5
In subsection (5)(c) the reference to expenses shall be construed as a reference to such of the expenses concerned as are attributable to the branch or agency.
6
In subsection (5)(d) the reference to interest shall be construed as a reference to such of the interest concerned as is so attributable.
7
In determining for the purposes of subsection (5) whether there has been any increase or reduction in the value (whether realised or not) of assets—
a
no regard shall be had to any period of time during which an asset does not fall within paragraph (a) or (b) of sub-paragraph (4) above; and
b
in the case of an asset which falls within paragraph (b) of that sub-paragraph, only the specified portion of any increase or reduction in the value of the asset shall be taken into account;
F17and in paragraph (b) above the “specified portion” has the same meaning as in paragraph 1A(3)(b) above.
F187A
For the purposes of this paragraph any expression to which a meaning is given by section 11A of the Taxes Act 1988 has that meaning.
8
Where for a period of account any item consisting of income, expenses or interest referred to in subsection (5) is not brought into account within the meaning given by subsection (6) it shall be treated as brought into account for the period if it arises in the period.
9
Where for a period of account any increase in value referred to in subsection (5) is not brought into account within the meaning given by subsection (6) it shall be treated as brought into account for the period if it is shown in the company’s records as available to fund one or both of the following for the period, namely, bonuses to policy holders and dividends to shareholders.
10
Where for a period of account any reduction in value referred to in subsection (5) is not brought into account within the meaning given by subsection (6) it shall be treated as brought into account for the period if it is shown in the company’s records as reducing sums available to fund one or both of the following for the period, namely, bonuses to policy holders and dividends to shareholders.
F1911
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Sch. 8A inserted (27.7.1993) by 1993 c. 34, s. 101(2), Sch. 10