SCHEDULES

SCHEDULE 3 Insurance companies and friendly societies

Schedule 19AB to the Taxes Act 1988

10

1

Schedule 19AB to the Taxes Act 1988 (payments on account of tax credits and deducted tax) shall be amended as follows.

2

In paragraph 1 (entitlement to certain payments on account) in sub-paragraph (1)—

a

the words “the aggregate of” shall cease to have effect; and

b

paragraph (b) (which confers entitlement to payments in respect of tax credits) shall cease to have effect.

3

In sub-paragraph (7) of that paragraph, as that sub-paragraph has effect apart from the provisions of paragraph 1(6) of Schedule 34 to the M1Finance Act 1996—

a

the words “paid or” shall cease to have effect;

b

paragraph (b) shall cease to have effect; and

c

in the words following paragraph (b), the words “or in section 42(5A) of the Management Act” shall cease to have effect.

4

Sub-paragraph (8) (which falls with the repeal of section 438(6)) shall cease to have effect.

5

In sub-paragraph (10) (which defines “pension business repayments”)—

a

the words “and payments of tax credits”, and

b

the words “or in section 42(5A) of the Management Act”,

shall cease to have effect.

6

Sub-paragraph (2) above has effect in relation to distributions made on or after 2nd July 1997.

7

Sub-paragraphs (3) to (5) above have effect for accounting periods beginning on or after 2nd July 1997.