The Overseas Life Insurance Companies (Amendment No. 2) Regulations 2007

• Citation: S.I. 2007/3449
• Sections: 8

Section 1 Citation, commencement and effect

(1) These Regulations may be cited as the Overseas Life Insurance Companies (Amendment No. 2) Regulations 2007 and shall come into force on 28th December 2007.

(2) These Regulations have effect in relation to periods of account which begin on or after 1st January 2008.

Section 2 Amendments to the Overseas Life Insurance Companies Regulations 2006

The Overseas Life Insurance Companies Regulations 2006 are amended as follows.

Section 3 Amendment of regulation 5

(1) Regulation 5 (modifications of section 76 of the Income and Corporation Taxes Act 1988) is amended as follows.

(2) In paragraph (2), in sub-paragraphs (i) and (ii) of paragraph (b) of the substituted subsection (3), for “profit and loss account” substitute “long-term business technical account”.

(3) After paragraph (4) add—

(5) In subsection (15) , after the definition of “expenses payable” insert—

“long-term business technical account” means the technical account for life-assurance business included in IAD accounts, or where the technical account included in the IAD accounts for non-life-insurance business of the company is used for all business, such part of that account as relates to the long-term business of the company;

Section 4 Amendment of regulation 6

(1) Regulation 6 (modifications of section 431(2) of the Income and Corporation Taxes Act 1988) is amended as follows.

(2) In paragraph (2)(b), for paragraph (i) substitute—

(i) for “paragraph 5(d) of Schedule 3 to that Act” substitute “sub-paragraph (d) or (da) of paragraph 5 of Schedule 3 to that Act (an “ EEA firm”);

(3) In paragraph (5), in the inserted definition of “long-term insurance fund”—

(a) in paragraph (a), for “life assurance” substitute “life-assurance”,

(b) after paragraph (a) insert—

(aa) where the technical account included in the IAD accounts for non-life-insurance business of the company is used for all business, such part of that account as relates to the long-term business of the company; or

(c) in paragraph (b), omit “as relates to” (in the first place), and

(d) for “that technical account or income statement”, substitute “either that technical account or that part of the technical account or that part of the income statement”.

Section 5 Amendment of regulation 11

In regulation 11(4) (modifications of section 440 of the Income and Corporation Taxes Act 1988)—

(a) in the inserted subsection (4AA), after “Act” insert “2001”, and

(b) after the inserted subsection (4AA) insert—

(4AB) Where goodwill is acquired by an EEA firm or a Treaty firm (“the transferee”) as a result of an insurance business transfer scheme which has effect to transfer long-term business from any person who is not such a firm to the transferee—

(a) if the goodwill (or part of it) was within the category set out in paragraph (e) of subsection (4) above immediately before the acquisition, the goodwill (or part) shall for the purposes of subsections (2) and (3) above be treated as being within that category immediately afterwards, and

(b) if the goodwill (or part of it) was within the category set out in paragraph (f) of subsection (4) above immediately before the acquisition, the goodwill (or part) shall for the purposes of subsections (2) and (3) above be treated as being within that category immediately afterwards.

Section 6 Amendment of regulation 15

For regulation 15 (modification of section 444AC of the Income and Corporation Taxes Act 1988) substitute—

(15)

(1) Modify section 444AC (transfers of business: excess of assets or liabilities) as follows.

(2) In subsections (2)(a), (2A)(b) and (5)(b), in a case where the transferee is an EEA firm or a Treaty firm, for “transferee’s line 31 amount in relation to the transfer” substitute “value of the assets transferred to the transferee’s long-term insurance fund in consideration of the assumption by the transferee of the liabilities to policy holders and annuitants”.

(3) In subsection (5A), in a case where the transferor is an EEA firm or a Treaty firm—

(a) for the words from “means— ” to “other” substitute “means, in relation to an overseas life insurance company where the company is an EEA firm or a Treaty firm,”; and

(b) omit “(in either case)”.

(15A) In section 444AD(4)(b) (transfers of business: modification of s 83(2B) FA 1989 ) , in a case where the transferee is an EEA firm or a treaty firm, for the words from “transferee’s” to “fund” substitute “value of the assets transferred to the transferee’s long-term insurance fund in consideration of the assumption by the transferee of the liabilities to policy holders and annuitants”.

Section 7 Amendment of regulation 24

In regulation 24(2) (modifications of section 83A of the Finance Act 1989) , in the inserted subsection (2A), for the words from “are” to the end substitute—

are—

(a) such technical accounts (or such parts of those accounts) included in the IAD accounts, or

(b) such parts of the income statements included in the IAS accounts,

as relate to the whole of the company’s long-term business or such of that business as is carried on through the permanent establishment in the United Kingdom through which the company carries on life assurance business.

Section 8 Amendment of regulation 26

In regulation 26(6) (modification of section 89 of the Finance Act 1989) , in the inserted subsection (6A), for the words from “means” to the end substitute—

means brought into account—

(a) in such technical accounts (or such parts of those accounts) included in the IAD accounts, or

(b) in such parts of the income statements included in the IAS accounts,

as relate to the whole of the company’s long-term business or such of that business as is carried on through the permanent establishment in the United Kingdom through which the company carries on life assurance business.