F1 SCHEDULE 7BModification of Act in relation to overseas life insurance companies
1
In its application to an overseas life insurance company (as defined in section 431(2) of the Taxes Act) this Act shall have effect with the following modifications; and in those modifications any reference to the Taxes Act 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
(1)
In section 13(5)(d), the words “section 11(2)(b), (c), (d) or (e) of the Taxes Act"shall be treated as substituted for the words “section 10(3)".
(2)
This paragraph shall apply in relation to chargeable gains accruing to companies in accounting periods beginning after 31st December 1992.
3
(1)
In section 16(3), the words “under section 11(2)(b), (c), (d) or (e) of the Taxes Act" shall be treated as substituted for the words “under section 10".
(2)
This paragraph shall apply in relation to accounting periods beginning after 31st December 1992.
4
(1)
“(7)
For the purposes of this section an asset is at any time a chargeable asset in relation to an overseas life insurance company if, were it to be disposed of at that time, any chargeable gains accruing to the company on the disposal would form part of its chargeable profits for corporation tax purposes by virtue of section 11(2)(b), (c), (d) or (e) of the Taxes Act.”
(2)
This paragraph shall apply in relation to accounting periods beginning after 31st December 1992.
5
(1)
In section 140A(2), the words “
section 11(2)(b), (c) or (d) of the Taxes Act
”
shall be treated as substituted for the words “section 10(3)”.
(2)
This paragraph shall apply in relation to transfers taking place in accounting periods of company B beginning after 31st December 1992.
6
(1)
In section 159(4)(b), the words “
section 11(2)(b), (c) or (d) of the Taxes Act
”
shall be treated as substituted for the words “section 10(3)”.
(2)
This paragraph shall apply in relation to disposals or acquisitions made in accounting periods beginning after 31st December 1992.
F26A
In section 171(1A), the words “section 11(2)(b), (c), (d) or (e) of the Taxes Act” shall be treated as substituted for the words “section 10(3)”.
6B
In section 175(2AA), the words “section 11(2)(b), (c), (d) or (e) of the Taxes Act” shall be treated as substituted for the words “section 10(3)”.
F37
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F47A
In section 179A(12), the words “section 11(2)(b), (c) or (d) of the Taxes Act” shall be treated as substituted for “section 10(3)".
8
(1)
In subsections (2)(a) and (3) of section 185, the words “
or (4A)
”
shall be treated as inserted after the words “subsection (4)”.
(2)
“(4A)
Subject to subsection (4B) below, if at any time after the relevant time the company is an overseas life insurance company —
(a)
any assets of its F5long-term insurance fund which, immediately after the relevant time —
(i)
are situated outside the United Kingdom and are used or held for the purposes of the branch or agency in the United Kingdom through which the company carries on life assurance business; or
(ii)
are attributed to the branch or agency by virtue of section 11B of the Taxes Act,
shall be excepted from subsection (2) above; and
(b)
any new assets of its F5long-term insurance fund which, after that time —
(i)
are so situated and are so used or held; or
(ii)
are so attributed,
shall be excepted from subsection (3) above.
(4B)
Subsection (4A) above shall not apply if the relevant time falls before the relevant day; and for the purposes of this subsection the relevant day is the first day of the company's first accounting period to begin after 31st December 1992.”
(3)
“(ba) “life assurance business” and “F5long-term insurance fund” have the meanings given by section 431(2) of the Taxes Act;”
9
(1)
In F6section 190(2)(b), the words “section 11(2)(b), (c), (d) or (e) of the Taxes Act”
shall be treated as substituted for the words “section 10(3)”.
(2)
This paragraph shall apply in relation to accounting periods beginning after 31st December 1992.
F79A
In section 211(1), the reference to F8an insurance business transfer scheme shall be treated as including a reference to any qualifying overseas transfer (within the meaning of paragraph 4A of Schedule 19AC to the Taxes Act).
10
(1)
“(5A)
In its application to an overseas life insurance company this section shall have effect as if the references in subsections (1) and (2) to assets were to such of the assets concerned as are —
(a)
section 11(2)(b) assets;
(b)
section 11(2)(c) assets; or
(c)
assets which by virtue of section 11B of the Taxes Act are attributed to the branch or agency in the United Kingdom through which the company carries on life assurance business;
and any expression used in this subsection to which a meaning is given by section 11A of the Taxes Act has that meaning.”
(2)
This paragraph shall apply in relation to accounting periods beginning after 31st December 1992.
11
(1)
In section 213(4), the words “
in the United Kingdom through a branch or agency
”
shall be treated as inserted after the words “F9long-term business”.
F10(1A)
In section 213(5), the reference to F11an insurance business transfer scheme shall be treated as including a reference to any qualifying overseas transfer (within the meaning of paragraph 4A of Schedule 19AC to the Taxes Act).
(2)
This paragraph shall apply in relation to events occurring in accounting periods beginning after 31st December 1992.
12
(1)
“(12)
In its application to an overseas life insurance company this section shall have effect as if —
(a)
the references in subsections (1), (2) and (6) to (10) to assets were to such of the assets concerned as are —
(i)
section 11(2)(b) assets; or
(ii)
section 11(2)(c) assets;
(b)
the references in subsections (1), (7) and (8) to liabilities were to such of the liabilities concerned as are attributable to the branch or agency in the United Kingdom through which the company carries on life assurance business;
F12(c)
the reference in subsection (11) to a transfer of the whole or part of a company’s long term business in accordance with a scheme sanctioned by a court under Part I of Schedule 2C to the Insurance Companies Act 1982 were to be treated as including a reference to any qualifying overseas transfer (within the meaning of paragraph 4A of Schedule 19AC to the Taxes Act), and the references in that subsection to the business to which the transfer relates were to be construed accordingly;
and any expression used in this subsection to which a meaning is given by section 11A of the Taxes Act has that meaning.”
(2)
This paragraph shall apply where the accounting period mentioned in section 214(6)(d) begins after 31st December 1992.
13
(1)
In subsection (4) of section 214A, in item G the words “
in the United Kingdom through a branch or agency
”
shall be treated as inserted after the words “cessation of the carrying on”.
(2)
In subsection (6) of that section, the words “
in the United Kingdom through a branch or agency
”
shall be treated as inserted after the words “long term business”.
F13(2A)
In subsection (7) of that section, the reference to a transfer of the whole or part of a company’s long term business in accordance with a scheme sanctioned by a court under Part I of Schedule 2C to the Insurance Companies Act 1982 shall be treated as including a reference to any qualifying overseas transfer (within the meaning of paragraph 4A of Schedule 19AC to the Taxes Act); and the references in that subsection and in subsection (8) of that section to the business to which the transfer relates shall be construed accordingly.
(3)
In subsection (11) of that section, the following words shall be treated as inserted at the end “
; and, as it applies for the purposes of this section, the words “(with the modifications set out in subsection (12) of that section)” shall be treated as inserted after the words “section 214.”
.
14
(1)
In section 228(6)(b), the words “
section 11(2)(b), (c) or (d) of the Taxes Act
”
shall be treated as substituted for the words “section 10(3)”.
(2)
This paragraph shall apply in relation to acquisitions made in chargeable periods beginning after 31st December 1992.
F1415
(1)
In Schedule 7A, in sub-paragraph (3A) of paragraph 1, the words “section 11(2)(b), (c), (d) or (e) of the Taxes Act” shall be treated as substituted for the words “section 10(3)”.
(2)
“(4A)
Where—
(a)
an asset is held by an overseas life insurance company, and
(b)
section 440 of the Taxes Act applies at any time in relation to the asset,
the asset shall not be treated for the purposes of sub-paragraph (3A)(b) above as having become a chargeable asset at that time.”
F1516
In Schedule 7AC, in paragraph 3(2)(c)(ii), the words “section 11(2)(b), (c) or (d) of the Taxes Act" shall be treated as substituted for the words “section 10(3)".