(1)This section applies if, in the case of any non-profit company,—
(a)the amount shown in line 51 of Form 14 of its periodical return in respect of the whole of its long-term business for any period of account (“the current period of account”), exceeds
(b)the aggregate amount of the amounts shown in line 51 of Form 14 of its periodical return in respect of its with-profits funds (if any) for that period.
(2)A comparison shall be made between—
(a)the appropriate line 51 amount of the company for the current period of account (“the current line 51 amount”), and
(b)the aggregate amount of the appropriate line 51 amount of the company for the previous period of account (if any) and the amount of any transfer-in amount of the company for that period.
(3)If the current line 51 amount is greater than that aggregate amount, an amount equal to the difference shall be deemed for the purposes of section 83(2) to be brought into account for the current period of account as an increase in the value of non-linked assets.
(4)If the current line 51 amount is less than that aggregate amount, an amount equal to the difference shall be deemed for the purposes of section 83(2) to be brought into account for the current period of account as a decrease in the value of non-linked assets.
(5)The amount brought into account by virtue of this section shall be deemed for the purposes of section 83(2) to be brought into account—
(a)in the revenue account mentioned in section 83A(2)(a), or
(b)if section 83A(4) is applicable, in the separate revenue account treated as prepared by virtue of that provision.
(6)Any amount brought into account by virtue of this section is in addition to any amount brought into account for the purposes of section 83(2) for the current period of account as an increase or decrease in the value of non-linked assets apart from this section.
(7)For the purposes of this section a company has a transfer-in amount for any period of account (“the previous period of account”) if—
(a)a transfer takes place in the following period of account, and
(b)the company, as the transferee, is a party to an election under section 444AD of the Taxes Act 1988 (transfers of business: modification of section 83(2B)),
and the amount of the transfer-in amount for the previous period of account is the amount specified in subsection (4) of that section.
(8)For the purposes of this section and section 83YB “non-profit company”, in relation to a period of account, means a company carrying on long-term business where, at the end of that period,—
(a)none of the liabilities of that business, or
(b)none but an insignificant proportion of those liabilities,
are with-profits liabilities.
(9)But if a company considers that, in relation to a period of account, it is no longer such a company, it may elect to be treated for the purposes of this section and section 83YB as if, in relation to that period of account and every subsequent period of account, it were a non-profit company.
(10)Any such election—
(a)is irrevocable, and
(b)must be made by notice to an officer of the Board on or before the end of the period of 6 months beginning with the day on which that period of account ends.
(11)For the purposes of this section and section 83YB—
“amount”, in relation to line 51 of Form 14 of the company's periodical return, includes a nil amount;
“with-profits fund” has the same meaning as in the [F2Insurance Prudential Sourcebook] .]
Textual Amendments
F1Ss. 83YA, S. 83YB inserted (with effect in accordance with Sch. 11 para. 7(2) of the amending Act) by Finance Act 2006 (c. 25), Sch. 11 para. 7(1)
F2Words in s. 83YA(11) substituted (with effect in accordance with art. 1(2) of the amending S.I.) by The Insurance Companies (Corporation Tax Acts) (Miscellaneous Amendments) Order 2006 (S.I. 2006/3270), arts. 1(1), 9(a)
Modifications etc. (not altering text)
C1S. 83YA modified (19.7.2006) by Finance Act 2006 (c. 25), Sch. 11 para. 7(3)-(6)