Finance Act 2003

11 (1) In section 804B(7) of the Taxes Act 1988 (double taxation relief: insurance companies carrying on more than one category of business)— U.K.

(a) in paragraph (a), for “that net amount which is referable by virtue of section 432E to that category” substitute “ the investment income taken into account in that determination which would be referable to that category by virtue of section 432E if the investment income were the only amount included in the net amount ”, and

(b) in paragraph (b), for “net amount” substitute “ investment income ”.

(2) Section 804C of the Taxes Act 1988 (insurance companies: allocation of expenses etc in computations under Case I of Schedule D) is amended as follows.

(3) In subsections (4) and (5), for “relevant amount” substitute “ relevant income ”.

(4) For subsection (13) substitute—

“(13) For the purposes of the operation of this section in relation to any income or gain in respect of which credit falls to be allowed under any arrangements, the amount of the income or gain that is referable to a category of insurance business is the same fraction of the income and gain as the fraction of the foreign tax that is attributable to that category of business in accordance with section 804B.”.

(5) This paragraph has effect for accounting periods beginning on or after 1st January 2003 except those ending before 9th April 2003.