The Overseas Life Insurance Companies (Amendment) Regulations 2008

Insertion of regulations 14ZA to 14ZC

7.  After regulation 14 (modification of section 442A of the Income and Corporation Taxes Act 1988) insert—

“14ZA.   In section 444AA (transfers of business: deemed periodical returns)(1), in subsection (5), in a case where the transferor is an EEA firm or a Treaty firm, for paragraphs (a) and (b) substitute—

“(a) in respect of the amount of the relevant long-term business provisions immediately before the transfer, and

(b) in respect of the value, immediately before the transfer, of the assets transferred.”.

14ZB.   In section 444ABA (relevant non-transferred assets)(2), in subsection (1), in a case where the transferor is an EEA firm or a Treaty firm, for the definition of BTO substitute—

“BTO is the lesser of VA and APL, where—

(a)

VA is the value of the assets transferred by the insurance business transfer scheme shown (or treated as shown) in the periodical return of the transferor for the period of account of the transferor including the transfer date, and

(b)

APL is the amount of the profit or loss for the financial year shown in the balance sheet in the periodical return for the last period of account of the transferor ending before the transfer date, together with—

(i)

in the case of IAD accounts, the amount of profit or loss shown as being brought forward in that balance sheet, and

(ii)

in the case of IAS accounts, the amount of retained earnings shown as being brought forward in that balance sheet.”.

14ZC.— (1) In a case where the transferor is an EEA or a Treaty firm, modify section 444ABB (retained assets)(3) as follows.

(2) In subsection (1)—

(a) for “RL13” (in both places) substitute “RL”; and

(b) in the definition of RL13, for “AL13” substitute “APL”.

(3) In subsection (1A) for paragraphs (a) to (c) substitute—

“(a) APL is the amount of the profit or loss for the financial year shown in the balance sheet in the periodical return for the last period of account of the transferor ending before the transfer date, together with—

(i) in the case of IAD accounts, the amount of profit or loss shown as brought forward in that balance sheet, and

(ii) in the case of IAS accounts, the amount of retained earnings shown as brought forward in that balance sheet;

(b) VE is the amount (if any) by which VA exceeds VTL where—

(i) VA is the value of the assets transferred by the insurance business transfer scheme shown (or treated as shown) in the periodical return of the transferor for the period of account of the transferor including the transfer date, and

(ii) VTL is the value of the liabilities transferred by the insurance business transfer scheme (but excluding those which arise from deposit back arrangements); and

(c) relevant retained liabilities are any liabilities of the company’s long-term business which are owed by the company immediately after the transfer date and are shown (or treated as shown) as entries—

(i) at items C3 (net of reinsurance) and G in IAD accounts, or

(ii) at equivalent items in the balance sheet in IAS accounts.”.”.

(1)

Section 444AA was inserted by paragraph 18 of Schedule 33 to the Finance Act 2003 and substituted by article 10 of S.I. 2008/381.

(2)

Section 444ABA was inserted by paragraph 3 of Schedule 7 to the Finance Act 2004 (c. 12), substituted by paragraph 4 of Schedule 9 to the Finance Act 2007 and amended by article 12 of S.I. 2008/381.

(3)

Section 444ABB was inserted by paragraph 4 of Schedule 9 to the Finance Act 2007 and amended by article 13 of S.I. 2008/381.