The Overseas Life Assurance Fund (Amendment) Order 1994

• Citation: S.I. 1994/3278
• Sections: 5

Section 1 Citation, commencement and application

This Order may be cited as the Overseas Life Assurance Fund (Amendment) Order 1994, shall come into force on 10th January 1995 and shall apply in relation to periods of account of a company beginning after 31st October 1994 and ending on or after the day on which this Order comes into force.

Section 2 Amendments to Schedule 19AA to the Income and Corporation Taxes Act 1988

Schedule 19AA to the Income and Corporation Taxes Act 1988 (overseas life assurance fund) shall be amended as follows.

Section 3 Amendments to Schedule 19AA to the Income and Corporation Taxes Act 1988

In paragraph 2(3)(c), for the words from “either”to “paragraph” there shall be substituted the words “assets within paragraph 5(5)(a) or”.

Section 4 Amendments to Schedule 19AA to the Income and Corporation Taxes Act 1988

(1) In paragraph 4, for sub-paragraph (1) there shall be substituted —

(1) The amount referred to in paragraph 3 above shall be determined by the formula—

where —

A is the liabilities of the company’s overseas life assurance business at the end of the period of account,

B is the appropriate part of the investment reserve at that time,

C is the value, at that time, of any land in the United Kingdom which is an asset linked solely to the company’s overseas life assurance business, and

D is the relevant fraction of the value, at that time, of any land in the United Kingdom which is an asset linked both to the company’s overseas life assurance business and to some other category of business.

(2) In paragraph 4, in sub-paragraph (2) for the words “sub-paragraph (1)(b) above”there shall be substituted the words “sub-paragraph (1) above, in B,”.

(3) In paragraph 4, after sub-paragraph (2) there shall be added —

(3) In this Schedule “land”includes buildings and other structures, land covered with water, and any estate, interest, easement, servitude, right or licence in or over land.

(4) In sub-paragraph (1) above, in D, “the relevant fraction”is the fraction of which —

(a) the numerator is the value, at the end of the period of account, of such of the liabilities of the company’s overseas life assurance business as were liabilities in respect of benefits to be determined by reference to the value of the asset; and

(b) the denominator is the value, at that time, of all the liabilities of the company’s long term business which were liabilities in respect of benefits to be so determined..

Section 5 Amendments to Schedule 19AA to the Income and Corporation Taxes Act 1988

In paragraph 5(5) —

(a) in paragraph (a), after the word “assets”there shall be inserted “, other than land in the United Kingdom,”;

(b) in paragraph (c) —

(i) after the word “assets”there shall be inserted the words “, other than land in the United Kingdom,”, and

(ii) after the word “agency”there shall be inserted the words “outside the United Kingdom”;

(c) for paragraph (e) there shall be substituted —

(e) assets not within any of paragraphs (ea), (f) and (g) below;

(ea) interests in authorised unit trusts;

(d) after paragraph (f) there shall be inserted —

(g) land in the United Kingdom;