(This note is not part of the Regulations)
Section 156 of the Finance Act 2003 provides that the enactments relating to corporation tax have effect in relation to overseas life insurance companies subject to such modifications and exceptions as may be prescribed by the Treasury.
These Regulations amend the Overseas Life Insurance Companies Regulations 2006 (S.I. 2006/3271: “the principal Regulations”) which make such modifications.
Regulation 1 provides for citation, commencement and effect. Authority for the Regulations to have effect in relation to periods of account (whenever beginning) which end on or after the day on which they come into force is contained in section 156(4) of the Finance Act 2003.
Regulation 2 introduces the amendments to the principal Regulations. The following regulations amend the principal Regulations so as to take into account amendments to primary legislation made by the Finance Act 2007 (“FA 2007”), the Finance Act 2008 (“FA 2008”) and the Insurance Business Transfer Schemes (Amendment of the Corporation Tax Acts) Order 2008 (S.I. 2008/381).
Regulations 3 to 12 amend regulations of the principal Regulations which modify provisions of the Income and Corporation Taxes Act 1988 (“ICTA”).
Regulation 3 amends regulation 5(3) which modifies section 76(7) of ICTA (expenses of insurance companies).
Regulation 4 amends regulation 6 which modifies section 431 of ICTA (interpretative provisions relating to insurance companies).
Regulation 5 omits regulation 8(2) which modifies section 432A(8) of ICTA (apportionment of income and gains).
Regulation 6 omits regulation 9(3) in consequence of the repeal of section 432B(8G) of ICTA (apportionment of receipts brought into account) by paragraph 19(4) of Schedule 17 to FA 2008.
Regulation 7 inserts regulations 14ZA, 14ZB and 14ZC which modify respectively sections 444AA (transfers of business: deemed periodical returns), 444ABA (relevant non-transferred assets) and 444ABB (retained assets) of ICTA.
Regulation 8 substitutes regulation 14A which modifies section 444ABD of ICTA (transferor’s period of account including transfer).
Regulation 9 substitutes regulation 15 which modifies section 444AC of ICTA (transfer schemes: reduction of income of transferee).
Regulation 10 omits regulation 15A in consequence of the repeal of section 444AD of ICTA (transfers of business: modification of section 83(2B) of the Finance Act 1989) by paragraph 7(1) of Schedule 9 to FA 2007.
Regulation 11 inserts new regulation 15B which modifies ICTA by omitting section 444AE (transfers of business: FAFTS).
Regulation 12 inserts new regulation 15C which modifies section 444AEA of ICTA (transfer schemes: anti-avoidance rule).
Regulations 13 to 17 amend regulations of the principal Regulations which amend provisions of the Finance Act 1989 (“FA 1989”).
Regulation 13 amends regulation 22 which modifies section 83 of FA 1989 (receipts to be taken into account).
Regulation 14 inserts new regulation 22B which modifies FA 1989 by omitting sections 83YC to 83YF (financing-arrangement-funded transfers).
Regulation 15 omits regulation 23 in consequence of the repeal of section 83ZA of FA 1989 (contingent loans) by paragraph 1(4) of Schedule 17 to FA 2008.
Regulation 16 omits regulation 25 in consequence of the substitution of section 88(3) of FA 1989 (corporation tax: policy holders’ fraction of profits) by paragraph 18(4) of Schedule 17 to FA 2008.
Regulation 17 omits regulation 26(2) in consequence of the repeal of section 89(1B) of FA 1989 (policy holders’ share of profits) by paragraph 18(5)(a) of Schedule 17 to FA 2008.
A full and final Impact Assessment has not been produced for this instrument as a negligible impact on the private or voluntary sectors is foreseen.