The Individual Savings Account (Insurance Companies) (Amendment) Regulations 2001

Citation, commencement and effect

1.  These Regulations may be cited as the Individual Savings Account (Insurance Companies) (Amendment) Regulations 2001 and shall come into force on 1st January 2002, and shall have effect in relation to accounting periods of insurance companies beginning on or after 1st January 2002.

Interpretation

2.  In these Regulations—

“the principal Regulations” means the Individual Savings Account (Insurance Companies) Regulations 1998(1);

“regulation” means a regulation of the principal regulations;

“Schedule 19AB” means Schedule 19AB to the Income and Corporation Taxes Act 1988(2).

Amendments to the principal Regulations

3.—(1) Regulation 20 (application of Schedule 19AB to the individual savings account business of insurance companies) shall be amended as follows.

(2) In paragraph (1)—

(a) for “3 and 4” there shall be substituted “2, 4, and 6(4) to (6)”;

(b) the words “as it applies in relation to pension business of such companies” shall be omitted.

(3) Paragraph (2) shall be omitted.

4.  For regulation 21 there shall be substituted the following regulation—

“21.   —

(1) The amendments made to Schedule 19AB by paragraphs 10 and 11 of Schedule 3 to the Finance (No. 2) Act 1997, other than the amendment made by paragraph 10(4) of that Schedule, shall not have effect.

(2) In the heading to Schedule 19AB for the words “PENSION BUSINESS: PAYMENTS ON ACCOUNT OF TAX CREDITS AND DEDUCTED TAX” there shall be substituted the words “INDIVIDUAL SAVINGS ACCOUNT BUSINESS: PAYMENTS ON ACCOUNT BY TAX CREDITS”.

(3) In paragraphs 1(1), (2), (5) and (7) and 3(1A) for the words “pension business” wherever they occur there shall be substituted the words “individual savings account business”.

(4) In paragraph 1(1)—

(a) for the words “, subject to paragraph 2 below, to the aggregate of” there shall be substituted the word “to”;

(b) paragraph (a) shall be omitted.

(5) Paragraph 1(3) shall be omitted.

(6) Paragraph 1(4) shall be omitted.

(7) After paragraph 1(4) the following paragraphs shall be inserted—

“(4A) The provisional fraction for the purposes of this paragraph for a relevant accounting period shall be such fraction as the company may reasonably estimate, being a fraction which is not likely to be greater than the relevant fraction for its individual savings account business which would be determined in accordance with subsections (5) to (9B) of section 432A for that accounting period.

(4B) In sub-paragraph (4A) above “relevant accounting period” means—

(a) the accounting period in which 6th April 1999 falls, or

(b) any succeeding accounting period which begins before 6th April 2004.”

(8) In paragraph 1(5)(b) the words “payment or” in each place where they occur shall be omitted.

(9) In paragraph 1(7)—

(a) the words “or repaid” shall be omitted;

(b) paragraph (a) shall be omitted;

(c) for “9(2)” there shall be substituted “9(3)”;

(d) the words “or section 42(4) of the Management Act” shall be omitted.

(10) Paragraph 1(10) and (11) shall be omitted.

(11) In paragraph 3(1A)—

(a) for the words “assumptions in sub-paragraphs (1B) and (1C)” there shall be substituted the words “assumption in sub-paragraph (1B)”;

(b) the words “or repaid” shall be omitted;

(c) for “9(2)” there shall be substituted “9(3)”;

(d) the words “or section 42(4) of the Management Act” shall be omitted;

(e) paragraph (a) shall be omitted.

(12) In paragraph 3(1B)—

(a) the words “or repayments” shall be omitted;

(b) paragraph (a) shall be omitted;

(c) in paragraph (b) for the words “that sub-paragraph” there shall be substituted the words “sub-paragraph (1A) above”.

(13) Paragraph 3(1C) shall be omitted.

(14) In paragraph 3(8)—

(a) the words “or repaid” shall be omitted;

(b) paragraph (a) shall be omitted;

(c) in paragraph (b) for the words “that sub-paragraph” there shall be substituted the words “sub-paragraph (1A) above”.

(15) In paragraph 6(1) in the definition of “provisional fraction” for the words “paragraphs 1(4) and 2” there shall be substituted “paragraph 1(4A)”.

(16) In paragraphs (3) to (15) of this regulation a reference to a paragraph, without more, is a reference to that numbered paragraph of Schedule 19AB.”

5.  The Schedule to these Regulations sets out the text of Schedule 19AB as applied by the principal Regulations and these Regulations.

Nick Ainger

John Heppell

Two of the Lords Commissioners of Her Majesty’s Treasury

11th December 2001