The Insurance Companies (Taxation of Reinsurance Business) (Amendment No. 2) Regulations 2004

• Citation: S.I. 2004/2257
• Sections: 6

Section 1 Citation, commencement, effect and transitional provisions

(1) These Regulations may be cited as the Insurance Companies (Taxation of Reinsurance Business)(Amendment No. 2) Regulations 2004 and shall come into force on 15th September 2004.

(2) Regulations 4(2) and (3) shall have effect with respect to accounting periods beginning on or after 1st January 2003 and regulation 5 shall have effect with respect to accounting periods beginning on or after 1st November 2003.

(3) Notwithstanding paragraph (2), no amount shall be treated as an amount of investment return given by regulation 4 of the Insurance Companies (Taxation of Reinsurance Business) Regulations 1995 for an accounting period ending before 1st January 2004 if that amount arises solely by virtue of the amendment made to that regulation by regulation 4(3) of this instrument.

(4) For the purposes of computing I n-1 in regulation 5 of the Insurance Companies (Taxation of Reinsurance Business) Regulations 1995 in respect of an amount of investment return to which paragraph (3) of this regulation applies, the rate of tax prescribed by virtue of regulation 5(2) of those Regulations shall be treated as nil.

Section 2 Amendment of the Insurance Companies (Taxation of Reinsurance Business) Regulations 1995

The Insurance Companies (Taxation of Reinsurance Business) Regulations 1995 are amended as follows.

Section 3 Amendment of the Insurance Companies (Taxation of Reinsurance Business) Regulations 1995

In regulation 3(1) , in the definition of “P” after “premium” there shall be inserted—

or otherwise, or treated as paid where that company makes a payment to another person, and in pursuance of any arrangements that other person or a person connected with it (within the meaning of section 839 of the Taxes Act 1988) puts the reinsurer in funds

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

(1) Regulations 4 and 5 shall be amended as follows.

(2) In regulation 4 in the definition of P, and in regulation 5 in the definition of P n , the words “(but excluding any” to “the Prudential Sourcebook (Insurers))” shall be omitted.

(3) In—

(a) regulation 4, in the definition of P after “otherwise”, and

(b) in regulation 5(1), in the definition of P n after “otherwise”,

there shall be inserted the words—

, or treated as paid where that company makes a payment to another person, and in pursuance of any arrangements that other person or a person connected with it (within the meaning of section 839 of the Taxes Act 1988) puts the reinsurer in funds

Section 5 Amendment of the Insurance Companies (Taxation of Reinsurance Business) Regulations 1995

In regulation 9 —

(a) in paragraph (1), for “(4A)” there shall be substituted “(4)”; and

(b) paragraph (4A) is revoked.

Section 6 Revocation of other provisions

(1) In the Insurance Companies (Taxation of Reinsurance Business)(Amendment No. 2) Regulations 2003 , regulations 4(a), 5(a) and 9(2) and (4) are revoked.

(2) The Insurance Companies (Taxation of Reinsurance Business) (Amendment) Regulations 2004 are revoked.