Finance Act 2003

Meaning of “investment reserve” etc U.K.

25 U.K. In section 431(2) of the Taxes Act 1988 (interpretative provisions relating to insurance companies), after the definition of “insurance company” insert—

““investment reserve”, in relation to an insurance company, means the excess of the value of the assets of the company’s long-term business over the aggregate of—

(a) the value of the liabilities of that business, and

(b) any money debts (within the meaning of Chapter 2 of Part 4 of the Finance Act 1996) of the company not within paragraph (a) above which are owed in respect of that business;”.

26 U.K. In section 432A(9A) of the Taxes Act 1988 (apportionment of income and gains: meaning of “net value”), for the words after “assets over” substitute “ the value of money debts (within the meaning of Chapter 2 of Part 4 of the Finance Act 1996) attributable to an internal linked fund which are not owed in respect of long-term liabilities. ”.

27 U.K. In paragraph 4(5) of Schedule 19AA to the Taxes Act 1988 (overseas life assurance fund), in the definition of “investment reserve”, for paragraphs (a) and (b) substitute—

“(a) the value of the liabilities of that business, and

(b) any money debts of the company not within paragraph (a) above which are owed in respect of that business;”.

28 U.K. Paragraphs 25 to 27 have effect in relation to periods of account beginning on or after 1st January 2003.