PART 2AMENDMENTS TO PRIMARY LEGISLATION

The Finance Act 1997 (c. 16)

Stamp duty: demutualisation of insurance companies100

1

Amend section 96 (demutualisation of insurance companies) as follows.

2

In subsection (7) for paragraphs (a) and (b) substitute—

a

a transfer from a company to another person of business consisting of the effecting or carrying out of contracts of insurance which is effected under an insurance business transfer scheme; or

b

a transfer of the whole or any part of the business of a general insurance company carried on through a branch or agency in the United Kingdom which takes place in accordance with any authorisation granted outside the United Kingdom for the purposes of—

i

Article 11 of the third life assurance directive; or

ii

Article 12 of the third non-life insurance directive.

3

In subsection (8)—

a

before the definition of “employee” insert—

  • “contract of insurance” has the meaning given by Article 3(1) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;

b

for the definition of “insurance company” substitute—

  • “general insurance company” means a company which has permission under Part 4 of the Financial Services and Markets Act 2000 or under paragraph 15 of Schedule 3 to that Act (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to effect or carry out contracts of insurance;

  • “insurance business transfer scheme” has the same meaning as in Part 7 of the Financial Services and Markets Act 2000;

  • “insurance company” means a company which carries on the business of effecting or carrying out contracts of insurance;

c

after the definition of “mutual insurance company” insert—

  • “the third life insurance directive” means the Council Directive of 10th November 1992 on the co-ordination of laws, regulations and administrative provisions relating to direct life assurance and amending Directives 79/267/EEC and 90/619/EEC (No.92/96/EEC);

  • “the third non-life insurance directive” means the Council Directive of 18th June 1992 on the co-ordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance and amending Directives 73/239/EEC and 88/357/EEC (NO. 92/49/EEC)104;

4

This Article has effect in relation to any instrument executed on or after 1st December 2001 which effects a transfer—

a

under a scheme falling within section 105 of the Financial Services and Markets Act 2000, including an excluded scheme falling within Case 2, 3 or 4 of subsections (3) of that section; or

b

in relation to which section 116 of the Financial Services and Markets Act 2000 applies.