The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2002

• Citation: S.I. 2002/1409
• Sections: 7

Section 1 Citation and commencement

This Order may be cited as the Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2002 and shall come into force on 2nd July 2002.

Section 2 Amendment of the Income and Corporation Taxes Act 1988

(1) Amend the Income and Corporation Taxes Act in accordance with paragraphs (2) and (3).

(2) In section 840A(1)(b) (meaning of “bank”) for sub-paragraph (ii) substitute—

(ii) a society registered within the meaning of the Friendly Societies Act 1974 or incorporated under the Friendly Societies Act 1992 ,

(3) In paragraph 1(5)(a) and (b) of Schedule 19AB (pension business: payments on account of tax credits and deducted tax) for “long term” substitute “long-term”.

Section 3 Amendment of the Finance Act 1989

In section 83A(2) of the Finance Act 1989 (meaning of “brought into account”) —

(a) after “In paragraph (a)” insert “above”;

(b) at the end add “Paragraph (b) above does not include accounts required in respect of internal linked funds.”.

Section 4 Amendment of the Insurance Companies (Taxation of Reinsurance Business) Regulations 1995

(1) Amend regulation 10 of the Insurance Companies (Taxation of Reinsurance Business) Regulations 1995 (exclusion of policy and contract from section 442A) in accordance with paragraphs (2) and (3).

(2) Make the present provision paragraph (1) and for sub-paragraph (a) of that paragraph substitute—

(a) any policy which evidences a contract of long-term insurance which is neither—

(i) a qualifying contract of insurance, nor

(ii) a reinsurance contract; and

(3) After paragraph (1) add—

(2) In paragraph (1)(a) above, “contract of long-term insurance” means any contract which falls within Part 2 of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 and “qualifying contract of insurance” has the meaning given by article 3(1) of that Order.

Section 5 Amendment of the Insurance Companies (Reserves) (Tax) Regulations 1996

In regulations 7(3) and 8(2) of the Insurance Companies (Reserves) (Tax) Regulations 1996 ( EC companies and certain business carried on outside the United Kingdom) for “regulations” substitute “rules”.

Section 6 Amendment of the Friendly Societies (Modification of the Corporation Tax Acts) Regulations 1997

In regulation 53A of the Friendly Societies (Modification of the Corporation Tax Acts) Regulations 1997 (modification of paragraph 18 of Schedule 12 to the Finance Act 1997) renumber the second paragraph (3) as paragraph (4).

Section 7 Amendment of the Individual Savings Account Regulations 1998

In regulation 7(4)(a) of the Individual Savings Account Regulations 1998 (qualifying investments for a stocks and shares component) for “;” at the end of paragraph (iv) substitute “, or”.