The Insurance Companies (Corporation Tax Acts) Order 2004

• Citation: S.I. 2004/3266
• Sections: 9

Section 1 Citation, commencement and effect

This Order may be cited as the Insurance Companies (Corporation Tax Acts) Order 2004, shall come into force on 1st January 2005, and shall have effect in relation to periods of account beginning on or after 1st January 2005.

Section 2 Amendment of Chapter 1 of Part 12 of the Income and Corporation Taxes Act 1988

Chapter 1 of Part 12 of the Income and Corporation Taxes Act 1988 is amended as follows.

Section 3 Amendment of Chapter 1 of Part 12 of the Income and Corporation Taxes Act 1988

(1) Amend section 432E (section 432B: apportionment: participating funds) as follows.

(2) At the end of subsection (1) add “but subject to section 432G”.

Section 4 Amendment of Chapter 1 of Part 12 of the Income and Corporation Taxes Act 1988

After section 432F insert—

Section 432B: apportionment of business transfer-in

(432G)

(1) This section applies where an amount falls within section 83(2)(e) of the Finance Act 1989.

(2) Where—

(a) this section applies, and

(b) it is necessary in accordance with section 83 to determine what part of a business transfer-in is referable to life assurance business or any category of life assurance business,

a business transfer-in shall be apportioned to the categories of business of the transferee in the proportions which the amount of the liabilities transferred for each of those categories bear to the whole of the liabilities transferred.

Section 5 Amendment of Chapter 1 of Part 12 of the Income and Corporation Taxes Act 1988

(1) Amend section 444AC (transfers of business: modification of section 83(2) of the Finance Act 1989) as follows.

(2) In subsections (2) and (3)—

(a) for “line 15 figure” substitute “line 31 figure”; and

(b) for “as other income” substitute “as a business transfer-in”.

(3) In subsection (2) for “83(2)(d)” substitute “83(2)(e)”.

Section 6 Amendment of Chapter 1 of Part 12 of the Income and Corporation Taxes Act 1988

(1) Amend section 444AD (transfers of business: modification of section 83(2B) of the Finance Act 1989) as follows.

(2) In subsection (4)(b) for “line 15 figure” substitute “line 31 figure”.

Section 7 Amendment of the Finance Act 1989

The Finance Act 1989 is amended as follows.

Section 8 Amendment of the Finance Act 1989

(1) Amend section 83 (receipts to be taken into account in computing profits of a life assurance company chargeable to Case I of Schedule D) as follows.

(2) In subsection (2)—

(a) at the end of paragraph (c) omit “or”;

(b) at the end of paragraph (d) add—

; or

(e) business transfers-in.

(3) In subsection (2A) for “paragraphs (a) to (d)” substitute “paragraphs (a) to (e)”.

(4) In subsection (2B) after “total expenditure” insert “, or as a business transfer-out, ”.

Section 9 Amendment of the Finance Act 1989

(1) Amend section 83ZA (contingent loans) as follows.

(2) In subsections (10)(b) and (12) for “line 15 figure” substitute “line 31 figure”.

(3) In subsection (12) for “as other income” substitute “as business transfers-in”.