The Overseas Life Insurance Companies (Amendment) Regulations 2008

Amendment of regulation 6

4.—(1) Regulation 6 (modifications of section 431(2) of the Income and Corporation Taxes Act 1988)(1) is amended as follows.

(2) In paragraph (1), omit “(2)”.

(3) After paragraph (1) insert—

“(1ZA) Modify subsection (2) in accordance with paragraphs (1A) to (5).”.

(4) For paragraph (1A) substitute—

“(1A) In the definition of “foreign business assets”(2) omit—

(a) “either”,

(b) “or” at the end of paragraph (a), and

(c) paragraph (b).”.

(5) After paragraph (2) insert—

“(2A) In the case of an EEA firm or a Treaty firm, for the definition of “liabilities” substitute—

““liabilities”, where the company concerned is an EEA firm or a Treaty firm—

(a)

does not include liabilities that have been reinsured, but

(b)

subject to that, means liabilities (including those which arise from deposit back arrangements) as determined in accordance with actuarial principles for the purposes of any return equivalent to a periodical return and required to be made by the company under the law of the territory in which the company is resident;”.”.

(6) In paragraph (4)—

(a) omit the substituted definition of “liabilities”, and

(b) in the substituted definition of “insurance business transfer scheme”, for “or 4” substitute “, 4 or 5”.

(7) In paragraph (5), in the inserted definition of “free assets amount”—

(a) for “aggregate of the relevant liabilities and the amount of the shareholders’ excess assets” substitute “relevant liabilities”,

(b) insert “and” at the end of paragraph (a), and

(c) omit paragraph (c) and the “and” before it.

(8) After paragraph (5) insert—

“(6) In subsection (2YC)(3), at the end insert—

“so far as that income and those gains fall to be attributed, for the purposes of section 11AA(2)(4), to the permanent establishment in the United Kingdom through which the company carries on life assurance business.”.

(7) In subsection (2YD), at the end insert—

“so far as those amounts and that deduction fall to be attributed, for the purposes of section 11AA(2), to the permanent establishment in the United Kingdom through which the company carries on life assurance business.”.”.

(1)

Regulation 6 was relevantly amended by regulation 5 of S.I. 2007/2146.

(2)

In section 431(2) of the Income and Corporation Taxes Act 1988 (c. 1), the definition of “foreign business assets” was substituted for that of “foreign business currency assets” (inserted by paragraph 6(2) of Schedule 7 to the Finance Act 2007 (c. 11)) by paragraph 10(1) of Schedule 17 to the Finance Act 2008 (c. 9).

(3)

In section 431 of the Income and Corporation Taxes Act 1988, subsections (2YB) to (2YD) were inserted by paragraph 18(1) of Schedule 17 to the Finance Act 2008.

(4)

Section 11AA of the Income and Corporation Taxes Act 1988 was inserted by section 149(2) of the Finance Act 2003.