The Child Trust Funds (Insurance Companies) Regulations 2004

• Citation: S.I. 2004/2680
• Sections: 22

Section 1 Citation and commencement

These Regulations may be cited as the Child Trust Funds (Insurance Companies) Regulations 2004 and shall come into force on the day appointed under section 27 of the Child Trust Funds Act 2004, for the purposes of sections 8 and 9 of that Act.

Section 2 Interpretation

In these Regulations—

“child trust fund business” has the meaning given by regulation 3;

“individual savings account business” has the meaning given in the Insurance Companies Regulations ;

“the Insurance Companies Regulations” means the Individual Savings Account (Insurance Companies) Regulations 1998 ;

“the principal Regulations ” means the Child Trust Funds Regulations 2004 ;

“the Taxes Act ” means the Income and Corporation Taxes Act 1988.

Section 3 Child trust fund business

For the purposes of these Regulations “child trust fund business”, in relation to an insurance company, means so much of that company’s life assurance business as is referable to any policy of life insurance, or to the reinsurance of liabilities under any such policy, where the policy is, on the date on which the insurance is made, a qualifying investment for an account within the meaning of regulation 12 of the principal Regulations.

Section 4 Modifications of the Taxes Act

Regulations 5 to 17 specify modifications of provisions of the Taxes Act so far as concerns the child trust fund business (and, in the case of regulations 11(b) and (c), 13 and 14, the individual savings account business) of insurance companies.

Section 5 Modifications of the Taxes Act

In section 431(2) insert at the appropriate place the following definition—

“child trust fund business” has the meaning given by regulation 3 of the Child Trust Funds (Insurance Companies) Regulations 2004;

Section 6 Modifications of the Taxes Act

In both of sections 431C(1) and 431D(1) after “pension business” insert “, child trust fund business”.

Section 7 Modifications of the Taxes Act

In section 431F after “pension business,” insert “child trust fund business,”.

Section 8 Modifications of the Taxes Act

In section 432A(2) (as modified by the Insurance Companies Regulations) after paragraph (aa) insert—

(ab) child trust fund business;

Section 9 Modifications of the Taxes Act

In section 432AA(4) (as modified by the Insurance Companies Regulations) after paragraph (aa) insert—

(ab) child trust fund business;

Section 10 Modifications of the Taxes Act

In both of sections 432C(1) and 432D(1) after “pension business,” insert “child trust fund business,”.

Section 11 Modifications of the Taxes Act

In section 436 —

(a) after the words “pension business”, in each place where they occur, insert “or child trust fund business”;

(b) in subsection (1)(a) for “that business” substitute “the business of each such category”.

(c) after subsection (3)(c) insert—

(ca) there may be set off (so far as it has not been set off under paragraph (c)), against the profits of child trust fund business any loss, to be computed on the same basis as the profits, which has arisen from individual savings account business, in the same or any previous accounting period;

(cb) there may be set off (so far as it has not been set off under paragraph (c)), against the profits of individual savings account business any loss, to be computed on the same basis as the profits, which has arisen from child trust fund business, in the same or any previous accounting period;

Section 12 Modifications of the Taxes Act

In section 438(1) add at the end “ or child trust fund business”.

Section 13 Modifications of the Taxes Act

In section 440(4)(a) add at the end “, individual savings account business or child trust fund business, or assets linked to any of those categories but not to any other category of business”.

Section 14 Modifications of the Taxes Act

In section 440A(2)(a)(i) after “pension business” insert “, individual savings account business or child trust fund business or any of those categories of business”.

Section 15 Modifications of the Taxes Act

In section 466(2) insert at the appropriate place the following definition—

“child trust fund business” shall be construed in accordance with section 431(2);

Section 16 Modifications of the Taxes Act

In section 755A (as modified by the Insurance Companies Regulations) after paragraph (aa) in each of subsections (4) and (13) insert—

(ab) child trust fund business,

Section 17 Modifications of the Taxes Act

In paragraph 5(5) of Schedule 19AA after “pension business,” insert “child trust fund business,”.

Section 18 Modification of the Taxation of Chargeable Gains Act 1992

Regulation 19 specifies a modification of section 212 of the Taxation of Chargeable Gains Act 1992 so far as concerns child trust fund business of insurance companies.

Section 19 Modification of the Taxation of Chargeable Gains Act 1992

In section 212(2) after “pension business” insert “, child trust fund business”.

Section 20 Modification of the Capital Allowances Act 2001

Regulation 21 specifies a modification of section 256 of the Capital Allowances Act 2001 so far as concerns child trust fund business of insurance companies.

Section 21 Modification of the Capital Allowances Act 2001

In section 256(3)(a) after “pension business” insert “, child trust fund business”.

Section 22 Amendments to the Insurance Companies Regulations

Regulations 13(b), 15 and 16 of the Insurance Companies Regulations (which are superseded by regulations 11(b), 13 and 14 of these Regulations) shall cease to have effect.