Finance Act 1989

Section 89A.

[F1 SCHEDULE 8A U.K. Modification of sections [F2 82 TO 83A, 88] and 89 in relation to overseas life insurance companies

Textual Amendments

F1 Sch. 8A inserted (27.7.1993) by 1993 c. 34, s. 101(2), Sch. 10

F2 Words in Sch. 8A heading substituted (with effect in accordance with reg. 1 of the amending S.I.) by The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(2)

[F3 1 (1) In their application to an overseas life insurance company [F4 sections 82 to 83A and 88] of this Act shall have effect with the modifications specified in [F5 paragraphs 1ZA to 1D] below. U.K.

F6 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ]

Textual Amendments

F3 Sch. 8A paras. 1, 1A-1C substituted for para. 1 (1.5.1995) by 1995 c. 4, s. 51, Sch. 8 Pt. II para. 49(2) (with Sch. 8 paras. 55(2), 57(1))

F4 Words in Sch. 8A para. 1(1) substituted (with effect in accordance with reg. 1 of the amending S.I.) by The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(3)(a)(i)

F5 Words in Sch. 8A para. 1(1) substituted (with effect in accordance with reg. 1 of the amending S.I.) by The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(3)(a)(ii)

F6 Sch. 8A para. 1(2) omitted (with effect in accordance with reg. 1 of the amending S.I.) by virtue of The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(3)(b)

[F7 1ZA. U.K. The reference in section 82(2) to amounts allocated to policy holders or annuitants in respect of a period of account shall be construed as a reference to such of those amounts as fall to be attributed, for the purposes of section 11AA(2) of the Taxes Act 1988, to the permanent establishment in the United Kingdom through which the company carries on life assurance business.

Textual Amendments

F7 Sch. 8A paras. 1ZA, 1ZB inserted (with effect in accordance with reg. 1 of the amending S.I.) by The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(4)

1ZB. U.K. The reference in section 82A(1) to tax expended on behalf of policy holders or annuitants shall be construed as a reference to so much of that tax as falls to be attributed, for the purposes of section 11AA(2) of the Taxes Act 1988, to the permanent establishment in the United Kingdom through which the company carries on life assurance business.]

Textual Amendments

F7 Sch. 8A paras. 1ZA, 1ZB inserted (with effect in accordance with reg. 1 of the amending S.I.) by The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(4)

[F8 1A (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 [F9 permanent establishment] in the United Kingdom through which the company carries on life assurance business. U.K.

[F10 (2) The references to assets in section 83(2) (as it applies apart from subsection (3) of that section) and section 83(2B) to (2E) shall be construed as references to such of the assets concerned as fall to be attributed, for the purposes of section 11AA(2) of the Taxes Act 1988, to that permanent establishment.]

F11 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F12 (3A) The reference in section 83(2)(d) to other income shall be construed as a reference to such of the income concerned as falls to be attributed, for the purposes of section 11AA(2) of the Taxes Act 1988, to that permanent establishment.]

(4) For the reference in section 83(3) to [F13 assets being added] [F14 to the company’s [F15 long-term insurance] fund], there shall be substituted a reference to assets becoming assets of the [F15 long-term insurance] fund used or held for the purposes of the company’s United Kingdom [F13 permanent establishment], 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 [F16 an addition], shall be taken to be an amount equal to the value of the assets [F16 added].

[F17 (4A) In section 83(6), insert “or” at the end of paragraph (a), and omit paragraph (b).]

[F18 (5) Any reference in section 83AA(2)F19 ... or 83AB(1) or (3) to an amount being added to the relevant company’s [F15 long-term insurance] fund shall be construed in accordance with sub-paragraph (4) above.]]

Textual Amendments

F8 Sch. 8A paras. 1, 1A-1C substituted for para. 1 (1.5.1995) by 1995 c. 4, s. 51, Sch. 8 Pt. II para. 49(2) (with Sch. 8 paras. 55(2), 57(1))

F9 Words in Sch. 8A para. 1A(1) substituted (with effect in accordance with reg. 1 of the amending S.I.) by The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(5)(a)

F10 Sch. 8A para. 1A(2) substituted (with effect in accordance with reg. 1 of the amending S.I.) by The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(5)(b)

F11 Sch. 8A para. 1A(3) omitted (with effect in accordance with reg. 1 of the amending S.I.) by virtue of The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(5)(c)

F12 Sch. 8A para. 1A(3A) inserted (with effect in accordance with reg. 1 of the amending S.I.) by The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(5)(d)

F13 Words in Sch. 8A para. 1A(4) substituted (with effect in accordance with reg. 1 of the amending S.I.) by The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(5)(e)

F14 Words in Sch. 8A para. 1A(4) substituted (29.4.1996) by 1996 c. 8, s. 163, Sch. 31 para. 8(4)(a)

F15 Words in Sch. 8A para. 1A(4)(5) substituted (1.12.2001) by S.I. 2001/3629, art. 60(1)(d)

F16 Words in Sch. 8A para. 1A(4) substituted (29.4.1996) by 1996 c. 8, s. 163, Sch. 31 para. 8(4)(b)

F17 Sch. 8A para. 1A(4A) inserted (with effect in accordance with reg. 1 of the amending S.I.) by The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(5)(f)

F18 Sch. 8A para. 1A(5) added (29.4.1996) by 1996 c. 8, s. 163, Sch. 31 para. 8(5)

F19 Words in Sch. 8A para. 1A(5) omitted (with effect in accordance with reg. 1 of the amending S.I.) by virtue of The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(5)(g)

[F20 1AA. (1) Where an overseas life insurance company has a revenue account prepared for the purposes of Chapter 9 of the Prudential Sourcebook (Insurers), the reference in section 83ZA(8) (definition of “relevant net transfers to shareholders”) to the positive amounts brought into account as transfers to non-technical account shall be read as a reference to so much of any positive amounts brought into account as transfers to non-technical account as falls to be attributed, for the purposes of section 11AA(2) of the Taxes Act 1988, to the permanent establishment in the United Kingdom through which the company carries on life assurance business. U.K.

(2) Where an overseas life insurance company is an EEA firm, the reference in section 83ZA(8) to the positive amounts brought into account as transfers to non-technical account shall be read as a reference to so much of any positive amounts brought into account as transfers to non-technical account as —

(a) is shown in accounts drawn up in accordance with the Council Directive of 19th December 1991 on the annual accounts and consolidated accounts of insurance undertakings (No.91/674/EEC), and

(b) falls to be attributed, for the purposes of section 11AA(2) of the Taxes Act 1988, to the permanent establishment in the United Kingdom through which the company carries on life assurance business.

(3) In sub-paragraph (2) “EEA firm” means a firm of the kind mentioned in paragraph 5(d) of Schedule 3 to the Financial Services and Markets Act 2000.

(4) The reference in section 83ZA(9) to the amount allocated to policy holders as bonuses shall be construed as a reference to so much of that amount as is brought into account, and “brought into account” has the meaning given by section 83A.

(5) The reference in section 83ZA(10)(a) to liabilities shall be construed as a reference to so much of those liabilities as falls to be attributed, for the purposes of section 11AA(2) of the Taxes Act 1988, to the permanent establishment in the United Kingdom through which the company carries on life assurance business.

(6) Section 83ZA(12) shall apply but with the omission of the words “as other income”.]

Textual Amendments

F20 Sch. 8A para. 1AA inserted (with effect in accordance with reg. 1 of the amending S.I.) by The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(6)

[F21 1B [F22 (1)] The references in section 83A to the company’s [F23 long-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 [F24 Chapter 9 of the Prudential Sourcebook (Insurers)] is not required. U.K.

[F25 This is subject to sub-paragraph (1A).]

[F26 (1A) In its application in relation to an overseas life insurance company which is an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to the Financial Services and Markets Act 2000, section 83A shall have effect with the substitution for subsection (2) of —

“(2) Subject to the following provisions of this section and to any regulations made by the Treasury, the accounts recognised for the purposes of those sections are technical accounts included in accounts drawn up in accordance with the Council Directive of 19th December 1991 on the annual accounts and consolidated accounts of insurance undertakings (No.91/674/EEC), in respect of the whole of the company’s long-term business or such of that business as is carried on through the permanent establishment in the United Kingdom through which the company carries on life assurance business.”.]

F27 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ]

Textual Amendments

F21 Sch. 8A paras. 1, 1A-1C substituted for para. 1 (1.5.1995) by 1995 c. 4, s. 51, Sch. 8 Pt. II para. 49(2) (with Sch. 8 paras. 55(2), 57(1))

F22 Sch. 8A para. 1B renumbered as para. 1B(1) (1.12.2001 with effect as mentioned in art. 59(4)) of the amending S.I.) by S.I. 2001/3629, art. 59(3)

F23 Words in Sch. 8A para. 1B substituted (1.12.2001) by S.I. 2001/3629, art. 60(2)(b)

F24 Words in Sch. 8A para. 1B substituted (1.12.2001 with effect as mentioned in art. 59(4) of the amending S.I.) by S.I. 2001/3629, art. 59(2)

F25 Words in Sch. 8A para. 1B(1) inserted (with effect in accordance with reg. 1 of the amending S.I.) by The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(7)(a)

F26 Sch. 8A para. 1B(1A) inserted (with effect in accordance with reg. 1 of the amending S.I.) by The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(7)(b)

F27 Sch. 8A para. 1B(2) omitted (with effect in accordance with reg. 1 of the amending S.I.) by virtue of The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(7)(c)

F28 1C U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F28 Sch. 8A para. 1C omitted (with effect in accordance with reg. 1 of the amending S.I.) by virtue of The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(8)

[F29 1D. (1) In section 88(3), the reference to income and gains of the company’s life assurance business shall be construed as a reference to so much of that income and those gains as falls to be attributed, for the purposes of section 11AA(2) of the Taxes Act 1988, to the permanent establishment in the United Kingdom through which the company carries on life assurance business. U.K.

(2) The reference to the aggregate amount of the items specified in paragraphs (aa) to (b) of section 88(3) shall be construed as a reference to the aggregate of so much of the amount of each of those items as falls to be attributed, for the purposes of section 11AA(2) of the Taxes Act 1988, to that permanent establishment.]

Textual Amendments

F29 Sch. 8A para. 1D inserted (with effect in accordance with reg. 1 of the amending S.I.) by The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(9)

2 (1) In its application to an overseas life insurance company section 89 of this Act shall have effect with the following modificationsF30 ... . U.K.

F31 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F32 (2A) In subsection (1B), the reference to income and chargeable gains referable to the company’s basic life assurance and general annuity business shall be construed as a reference to so much of that income and those gains as falls to be attributed, for the purposes of section 11AA(2) of the Taxes Act 1988, to the permanent establishment in the United Kingdom through which the company carries on life assurance business.

(2B) In subsection (1B), the reference to the aggregate amount of the items specified in paragraphs (a) to (c) of that subsection shall be construed as a reference to the aggregate of so much of the amount of each of those items as falls to be attributed, for the purposes of section 11AA(2) of the Taxes Act 1988, to that permanent establishment.

(2C) In paragraph (b) of subsection (2), the reference to distributions shall be construed as a reference to so much of the distributions mentioned in that paragraph as falls to be attributed, for the purposes of section 11AA(2) of the Taxes Act 1988, to that permanent establishment.]

(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 [F33 that permanent establishment].

[F34 (4) The reference in subsection (5)(b) to assets shall be construed as a reference to such of the assets concerned as fall to be attributed, for the purposes of section 11AA(2) of the Taxes Act 1988, to that permanent establishment.]

(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 [F35 that permanent establishment].

(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.

[F36 (6A) Where the company is an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to the Financial Services and Markets Act 2000, subsection (6) shall have effect as if, for the words from ““brought into account”” to “(Insurers);” there were substituted ““brought into account” means brought into account in the technical accounts included in accounts drawn up in accordance with the Council Directive of 19th December 1991 on the annual accounts and consolidated accounts of insurance undertakings (No.91/674/EEC), in respect of the whole of the company’s long-term business or such of that business as is carried on through the permanent establishment in the United Kingdom through which the company carries on life assurance business;”.]

F37 (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F38 (7A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F39 (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F40 (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F41 (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F42 (11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F30 Words in Sch. 8A para. 2(1) omitted (with effect in accordance with reg. 1 of the amending S.I.) by virtue of The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(10)(a)

F31 Sch. 8A para. 2(2) omitted (with effect in accordance with reg. 1 of the amending S.I.) by virtue of The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(3)(b)

F32 Sch. 8A para. 2(2A)-(2C) inserted (with effect in accordance with reg. 1 of the amending S.I.) by The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(10)(c)

F33 Words in Sch. 8A para. 2(3) substituted (with effect in accordance with reg. 1 of the amending S.I.) by The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(10)(d)

F34 Sch. 8A para. 2(4) substituted (with effect in accordance with reg. 1 of the amending S.I.) by The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(10)(e)

F35 Words in Sch. 8A para. 2(5) substituted (with effect in accordance with reg. 1 of the amending S.I.) by The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(10)(f)

F36 Sch. 8A para. 2(6A) inserted (with effect in accordance with reg. 1 of the amending S.I.) by The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(10)(g)

F37 Sch. 8A para. 2(7) omitted (with effect in accordance with reg. 1 of the amending S.I.) by virtue of The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(10)(h)

F38 Sch. 8A para. 2(7A) omitted (with effect in accordance with reg. 1 of the amending S.I.) by virtue of The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(10)(h)

F39 Sch. 8A para. 2(8) omitted (with effect in accordance with reg. 1 of the amending S.I.) by virtue of The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(10)(h)

F40 Sch. 8A para. 2(9) omitted (with effect in accordance with reg. 1 of the amending S.I.) by virtue of The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(10)(h)

F41 Sch. 8A para. 2(10) omitted (with effect in accordance with reg. 1 of the amending S.I.) by virtue of The Overseas Life Insurance Companies Regulations 2004 (S.I. 2004/2200), regs. 1(1), 6(10)(h)

F42 Sch. 8A para. 2(11) repealed (1.5.1995 with effect in accordance with Sch. 8 para. 57 of the amending Act) by 1995 c. 4, s. 162, Sch. 29 Pt. VIII(5), note 2