The Taxes Act 1988 is amended as follows.

In section 431 (interpretative provisions relating to insurance companies) in subsection (2) (interpretation for purposes of Chapter 1 of Part 12) in the definition of “annuity business”, at the end insert “ , other than the business of granting immediate needs annuities (within the meaning of section 580C) ”.

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The amendment made by subsection (2) has effect in relation to accounting periods beginning on or after 1st January 2005.

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