The Exchange Gains and Losses (Insurance Companies) (Amendment No. 2) Regulations 1996

• Citation: S.I. 1996/1485
• Sections: 5

Section 1 Citation, commencement and effect

(1) These Regulations may be cited as the Exchange Gains and Losses (Insurance Companies) (Amendment No. 2) Regulations 1996 and shall come into force on 30th June 1996.

(2) Regulation 3 shall have effect in relation to accounting periods ending on or after 30th June 1996.

Section 2 Interpretation

In these Regulations “the principal Regulations ” means the Exchange Gains and Losses (Insurance Companies) Regulations 1994 and “regulation”means a regulation of the principal Regulations.

Section 3 Amendments to the principal Regulations

After regulation 5 there shall be inserted the following regulation—

(5A)

(1) In any case where, immediately before 1st April 1996, an insurance company holds an asset in exempt circumstances, the definition of “relevant qualifying asset” in paragraph 5(8) of Schedule 15 to the Finance Act 1996 shall be modified so as to except from that definition, in relation to an insurance company, an asset held in exempt circumstances immediately before 1st April 1996.

(2) References in paragraph (1) above to exempt circumstances shall be construed in accordance with paragraph 3 of Schedule 17 to the 1993 Act, but as if references in that paragraph to a currency were references to an asset.

Section 4 Amendments to the principal Regulations

In regulation 8(1) for the words “regulations 9 to 12” there shall be substituted the words “regulations 8A to 12”.

Section 5 Amendments to the principal Regulations

After regulation 8 there shall be inserted the following regulation—

(8A)

(1) An insurance company may elect that the enactments specified in paragraph (2) below shall not apply on the disposal of regulation 7 assets, and that, in its application to the loan relationships represented by those assets, Chapter II of Part IV of the Finance Act 1996 shall apply with the modification that paragraph 4 of Schedule 9 to that Act shall be omitted.

(2) The enactments specified in this paragraph are regulation 8 and sections 117A and 117B of the 1992 Act .

(3) An election under this regulation—

(a) shall have effect in relation to all regulation 7 assets (whether held on 1st April 1996 or acquired subsequently),

(b) shall be made by notice in writing given to an officer of the Board, either by 30th September 1996 or within three months of the end of the accounting period of the company in which it acquired a regulation 7 asset for the first time, whichever is the later, and

(c) shall be irrevocable.