[F1 83A Meaning of “brought into account”.U.K.
(1)[F2 In sections [F382A] to 83AB] “brought into account” means brought into account in an account which is recognised for the purposes of [F4those sections].
(2)Subject to the following provisions of this section and to any regulations made by the Treasury, the accounts recognised for the purposes of [F5those sections] are—
(a)a revenue account prepared for the purposes of [F6Chapter 9 of the Prudential Sourcebook (Insurers)] in respect of the whole of the company’s [F7long-term] business;
(b)any separate revenue account required to be prepared [F8under that Chapter] in respect of a [F9with-profits fund (see subsection (6))] .
F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)Where there are prepared any such separate accounts as are mentioned in subsection (2)(b) above, reference shall be made to those accounts rather than to the account for the whole of the business.
[F11(3A)Where, in the case of any with-profits fund in respect of which there is prepared such a separate account (“the sub-fund”),—
(a)the sub-fund forms part of another with-profits fund (“the wider fund”) in respect of which such a separate account is also prepared,
(b)in the case of a company whose life assurance business is mutual business, the sub-fund and each other with-profits fund which forms part of the wider fund are 100:0 funds, and
(c)the wider fund—
(i)does not form part of another with-profits fund in respect of which such a separate account is also prepared, or
(ii)forms part of another with-profits fund in respect of which such a separate account is also prepared and that separate account is treated by this subsection as not being a recognised account for the purposes of those sections,
the account in respect of the wider fund shall not be a recognised account for the purposes of those sections.
(3B)Where, in the case of such a separate account prepared in respect of a with-profits fund,—
(a)the account is not prevented from being a recognised account for the purposes of those sections by virtue of subsection (3A) above, but
(b)if paragraph (b) of that subsection were to be omitted, the account would be prevented from being such a recognised account by virtue of that subsection,
no such separate account prepared in respect of a with-profits fund forming part of that fund shall be such a recognised account.
(3C)In subsection (3A) above “100:0 fund” means a fund in the case of which—
(a)the policy holders of the fund are entitled to participate in all the profits of the fund, and
(b)no other persons are entitled to participate in any of the profits of the fund.
(3D)Subsection (3E) below applies where there is prepared such a separate account (“the with-profits account”) in respect of a with-profits fund—
(a)of which no other with-profits fund forms part, but
(b)of which a non-profit fund (see subsection (6)) forms part.
(3E)Where this subsection applies—
(a)the with-profits account shall not be a recognised account for the purposes of those sections, but
(b)there shall be treated as having been required and prepared a further separate revenue account covering so much of the items brought into account in the with-profits account as remains after excluding the items brought into account in that account in respect of the non-profit fund.]
[F12(4)If—
(a)a company prepares a revenue account in respect of the whole of its long-term business (“the main account”),
(b)it prepares one or more such separate accounts as are mentioned in subsection (2)(b) above, and
(c)the total of the items brought into account in the separate accounts—
(i)excluding any such accounts which by virtue of subsection (3A), (3B) or (3E)(a) above are not recognised accounts for the purposes of those sections, but
(ii)including any such accounts which by virtue of subsection (3E)(b) above are treated as having been required and prepared,
is not equal to the total amount brought into account in the main account,
there shall be treated as having been required and prepared a further separate revenue account covering the balance.]
F13(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F14(6)In this section “with-profits fund” and “non-profit fund” have the same meaning as in the Integrated Prudential Sourcebook.]]
Textual Amendments
F1SS. 83, 83A substituted for s. 83 (1.5.1995) by 1995 c. 4, s. 51, Sch. 8 Pt. I para. 16(1) (with Sch. 8 paras. 55(2), 57(1))
F2Words in s. 83A(1) substituted (29.4.1996 with effect as mentioned in Sch. 31 para. 10(2) of the amending Act) by 1996 c. 8, s. 163, Sch. 31 para. 6(1)(a)
F3Word in s. 83A(1) substituted (with effect in accordance with Sch. 33 para. 1(5) of the amending Act) by Finance Act 2003 (c. 14), Sch. 33 para. 1(2)
F4Words in s. 83A(1) substituted (29.4.1996 with effect as mentioned in Sch. 31 para. 10(2) of the amending Act) by 1996 c. 8, s. 163, Sch. 31 para. 6(1)(b)
F5Words in s. 83A(2) substituted (29.4.1996 with effect as mentioned in Sch. 31 para. 10(2) of the amending Act) by 1996 c. 8, s. 163, Sch. 31 para. 6(2)
F6Words in s. 83A(2)(a) substituted (1.12.2001 with effect as mentioned in art. 57(2) of the amending Act) by S.I. 2001/3629, art. 57(1)(a)
F7Words in s. 83A(2)(a) substituted (1.12.2001) by S.I. 2001/3629, art. 60(2)(a)
F8Words in s. 83A(2)(b) substituted (1.12.2001 with effect as mentioned in art. 57(2) of the amending Act) by S.I. 2001/3629, art. 57(1)(b)
F9Words in s. 83A(2)(b) substituted (with effect in accordance with Sch. 9 para. 13(6) of the amending Act) by Finance (No. 2) Act 2005 (c. 22), Sch. 9 para. 13(2)(a)
F10Words in s. 83A(2) repealed (10.7.2003) by Finance Act 2003 (c. 14), Sch. 43 Pt. 3(12)
F11Ss. 83A(3A)-(3E) inserted (with effect in accordance with Sch. 9 para. 13(6) of the amending Act) by Finance (No. 2) Act 2005 (c. 22), Sch. 9 para. 13(3)
F12S. 83A(4) substituted (with effect in accordance with Sch. 9 para. 13(6) of the amending Act) by Finance (No. 2) Act 2005 (c. 22), Sch. 9 para. 13(4)
F13S. 83A(5) repealed (1.1.1996) by 1996 c. 8, s. 205, Sch. 41 Pt. V(26), note
F14S. 83A(6) inserted (with effect in accordance with Sch. 9 para. 13(6) of the amending Act) by Finance (No. 2) Act 2005 (c. 22), Sch. 9 para. 13(5)
Modifications etc. (not altering text)
C1S. 83A modified by The Friendly Societies (Modification of the Corporation Tax Acts) Regulations 1997 (S.I. 1997/473), regs. 1(2), 36, 37 (as amended (30.1.2003) by S.I. 2003/23, regs. 1, 8; (8.4.2004) by S.I. 2004/822, regs. 1, 31, 32)