Citation, commencement, effect and transitional provision.

1. —(1) These Regulations may be cited as the Insurance Companies (Taxation of Reinsurance Business)(Amendment) Regulations 2004 and shall come into force on 16th September 2004.

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

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

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

2. —(1)The Insurance Companies (Taxation of Reinsurance Business) Regulations 1995( 4 ) are amended as follows.

3. In regulation 3(1)( 5 ), in the definition of “P” after “premium” insert—

“ 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 ” .

4. —(1) Amend regulations 4 and 5 as follows.

(2) In both regulations 4( 6 ) and 5( 7 ), omit the words “(but excluding any” to “the Prudential Sourcebook (Insurers))” wherever they appear.

(3) In—

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

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

insert 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 ” .

5. —(1) In regulation 9( 8 )—

(a) in paragraph (1), for “(4A)” substitute “(4)”; and

(b) paragraph (4A) is revoked.

Revocation

6. In the Insurance Companies (Taxation of Reinsurance Business) Regulations 2003, regulations 4(a), 5(a) and 9(2) and (4) are revoked.