Statutory Instruments
2002 No. 1409
FINANCIAL SERVICES AND MARKETS
The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2002
Made
23rd May 2002
Laid before Parliament
24th May 2002
Coming into force
2nd July 2002
The Treasury, in exercise of the powers conferred upon them by section 426 of the Financial Services and Markets Act 2000( 1 ), hereby make the following Order:
Citation and commencement
1. 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.
Amendment of the Income and Corporation Taxes Act 1988
2. —(1) Amend the Income and Corporation Taxes Act( 2 ) in accordance with paragraphs (2) and (3).
(2) In section 840A(1)(b) (meaning of “bank”)( 3 ) for sub-paragraph (ii) substitute—
“ (ii) a society registered within the meaning of the Friendly Societies Act 1974 ( 4 ) or incorporated under the Friendly Societies Act 1992 ( 5 ) , ” .
(3) In paragraph 1(5)(a) and (b) of Schedule 19AB (pension business: payments on account of tax credits and deducted tax)( 6 ) for “long term” substitute “long-term”.
Amendment of the Finance Act 1989
3. In section 83A(2) of the Finance Act 1989(meaning of “brought into account”)( 7 )—
(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.”.
Amendment of the Insurance Companies (Taxation of Reinsurance Business) Regulations 1995
4. —(1) Amend regulation 10 of the Insurance Companies (Taxation of Reinsurance Business) Regulations 1995(exclusion of policy and contract from section 442A)( 8 ) 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 ( 9 ) and “qualifying contract of insurance” has the meaning given by article 3(1) of that Order. ” .
Amendment of the Insurance Companies (Reserves) (Tax) Regulations 1996
5. 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)( 10 ) for “regulations” substitute “rules”.
Amendment of the Friendly Societies (Modification of the Corporation Tax Acts) Regulations 1997
6. 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)( 11 ) renumber the second paragraph (3) as paragraph (4).
Amendment of the Individual Savings Account Regulations 1998
Nick Ainger
Anne McGuire
Two of the Lords Commissioners of Her Majesty’s Treasury
23rd May 2002
Section 840A was inserted by paragraph 1(1) of Schedule 37 to the Finance Act 1996 (c. 8) and subsection (1)(b) of that section was substituted by article 46(2) of the Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 ( S.I. 2001/3629 ) (“the 2001 Order”).
Schedule 19AB was inserted by Schedule 8 to the Finance Act 1991 (c. 31) and is repealed by Part 2(12) of Schedule 33 to the Finance Act 2001 (c. 9) with effect in accordance with section 87 of that Act.
1989 c. 26 . Section 83A was substituted, together with section 83, for section 83 by paragraph 16(1) of Schedule 8 to the Finance Act 1995 (c. 4) and subsection (2) of section 83A was amended by paragraph 6(2) of Schedule 31 to the Finance Act 1996 and article 57 of the 2001 Order.
S.I. 1996/2991 . Regulations 7(3) and 8(2) were amended by article 151(1)(e) and (f) of the 2001 Order.
S.I. 1997/473 . Regulation 53A was inserted by regulation 5 of S.I. 1997/2877 and amended by article 164 of the 2001 Order.
S.I. 1998/1870 . Regulation 7(4)(a) was amended by article 172(3) of the 2001 Order.