Amendment of the Income and Corporation Taxes Act 19884

1

Amend section 431 (interpretative provisions relating to insurance companies) as follows.

2

In subsection (2)4—

a

after the definition of “free assets amount”5 insert—

  • “General Prudential Sourcebook” means the General Prudential Sourcebook made by the Financial Services Authority under the Financial Services and Markets Act 20006;

b

in the definition of “insurance company” at the end add “but does not include an insurance special purpose vehicle;”;

c

after the definition of “insurance company” insert—

  • “the Insurance Prudential Sourcebook” means the Prudential Sourcebook for Insurers made by the Financial Services Authority under the Financial Services and Markets Act 2000;

  • “insurance special purpose vehicle” means any undertaking which assumes risks from insurance or reinsurance undertakings and which fully funds its exposure to such risks through the proceeds of a debt issue or some other financing mechanism where the repayment rights of the providers of such debt or other financing mechanism are subordinated to the reinsurance obligations of the undertaking;

d

omit the definition of “the Integrated Prudential Sourcebook”;

e

in the definition of “liabilities”—

i

in paragraph (a) for “chapter 7.3 of the Integrated Prudential Sourcebook” substitute “section 1.2 of the Insurance Prudential Sourcebook”;

ii

in paragraph (b) for “chapter 1.3 of that Sourcebook” substitute “section 1.3 of the General Prudential Sourcebook”; and

f

in the definition of “value” for “chapter 1.3,” onwards substitute—

  • section 1.3 of the General Prudential Sourcebook, as read with section 2.1 of the Insurance Prudential Sourcebook;

3

In subsection (2ZC)(d)7—

a

for “shareholder’s” substitute “shareholders’”; and

b

for “transferor” substitute “transferee”.