Part 6Relationships treated as loan relationships etc
Chapter 11Investment life insurance contracts
Investment life assurance contracts treated as creditor relationships
564Section 563: interpretation
(1)
In section 563 “BLAGAB contract” means a contract forming part of basic life assurance and general annuity business of an insurance company but not part of business which is exempt from corporation tax under section 460 of ICTA (friendly society business and former friendly society business).
(2)
For the purposes of section 563 a contract is subject to a relevant comparable EEA tax charge if the contract forms part of the business of a company (other than the relevant company) to which a relevant comparable EEA tax charge has applied.
(3)
For the purposes of subsection (2) a relevant comparable EEA tax charge has applied to a company if each of conditions A to D is met.
(4)
Condition A is that a charge to tax has applied to the company under the laws of a territory outside the United Kingdom that is within the European Economic Area.
(5)
Condition B is that the charge has applied to the company—
(a)
as a body deriving its status as a company from those laws,
(b)
as a company with its place of management there, or
(c)
as a company falling under those laws to be regarded for any other reason as resident or domiciled there.
(6)
Condition C is that the charge applies at a rate of at least 20% in relation to the amounts subject to tax in the company's hands, other than amounts arising or accruing in respect of investments of a description for which a special relief or exemption is generally available.
(7)
Condition D is that the charge is made otherwise than by reference to the company's profits.