Finance Act 2007

19 (1) Section 432E (section 432B apportionment: participating funds) is amended as follows. U.K.

(2) For subsection (1) substitute—

“(1) The part of the net amount which is referable to life assurance business or to gross roll-up business is—

(a) the amount determined in accordance with subsections (2) and (2A) below, or

(b) if greater, the amount determined in accordance with subsection (3) below.

(1A) In this section “the net amount” means the aggregate of the amounts brought into account—

(a) as investment income,

(b) as an increase in the value of assets, or

(c) as other income,

less the aggregate of the amounts brought into account as a decrease in the value of assets.”

(3) In subsection (2)—

(a) in the definition of CAS, for “the category of business concerned” substitute “ life assurance business or of gross roll-up business ”, and

(b) in the definition of CS, for “business of the category concerned” substitute “ life assurance business or to gross roll-up business ”.

(4) In subsection (3)—

F1 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) in paragraph (b)—

(i) omit “mentioned in subsection (1) above”, F2 ...

F2 (ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) In subsection (4), for the words following “case,” substitute “is—

where—

A is so much of the net amount as is brought into account in respect of the relevant business less such part of it as is attributable to linked assets and foreign currency assets; and

B is the mean of the opening and closing liabilities of the relevant business reduced by the mean of the opening and closing values of any assets of the relevant business which are linked assets and foreign currency assets.”

F3 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) Omit subsections (5) and (6).

Textual Amendments

F1 Sch. 7 para. 19(4)(a) omitted (with effect in accordance with Sch. 23 para. 7 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 23 para. 6(a)

F2 Sch. 7 para. 19(4)(b)(ii) and word omitted (with effect in accordance with Sch. 17 para. 10(6)(7) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 17 para. 10(5)

F3 Sch. 7 para. 19(6) omitted (with effect in accordance with Sch. 23 para. 7 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 23 para. 6(a)