This instrument replaces S.I. 2004/2189 , is made in consequence of errors in that instrument and is being issued free of charge to all known recipients of that instrument.
Statutory Instruments
2004 No. 2257
TAXES
The Insurance Companies (Taxation of Reinsurance Business) (Amendment No. 2) Regulations 2004
Made
1st September 2004
Laid before the House of Commons
2nd September 2004
Coming into force
15th September 2004
Citation, commencement, effect and transitional provisions
1. —(1) These Regulations may be cited as the Insurance Companies (Taxation of Reinsurance Business)(Amendment No. 2) Regulations 2004 and shall come into force on 15th September 2004.
(2) Regulations 4(2) and (3) shall have effect with respect to accounting periods beginning on or after 1st January 2003 and regulation 5 shall have effect with respect to accounting periods beginning on or after 1st November 2003.
(3) Notwithstanding paragraph (2), no amount shall be treated as an amount of investment return given by regulation 4 of the Insurance Companies (Taxation of Reinsurance Business) Regulations 1995( 3 ) for an accounting period ending before 1st January 2004 if that amount arises solely by virtue of the amendment made to that regulation by regulation 4(3) of this instrument.
(4) For the purposes of computing I n-1 in regulation 5 of the Insurance Companies (Taxation of Reinsurance Business) Regulations 1995 in respect of an amount of investment return to which paragraph (3) of this regulation applies, the rate of tax prescribed by virtue of regulation 5(2) of those Regulations shall be treated as nil.
Amendment of the Insurance Companies (Taxation of Reinsurance Business) Regulations 1995
2.The Insurance Companies (Taxation of Reinsurance Business) Regulations 1995 are amended as follows.
“ 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) Regulations 4( 5 ) and 5( 6 ) shall be amended as follows.
(2) In regulation 4 in the definition of P, and in regulation 5 in the definition of P n , the words “(but excluding any” to “the Prudential Sourcebook (Insurers))” shall be omitted.
(3) In—
(a) regulation 4, in the definition of P after “otherwise”, and
(b) in regulation 5(1), in the definition of P n after “otherwise”,
there shall be inserted 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. In regulation 9( 7 )—
(a) in paragraph (1), for “(4A)” there shall be substituted “(4)”; and
(b) paragraph (4A) is revoked.
Revocation of other provisions
6. —(1) In the Insurance Companies (Taxation of Reinsurance Business)(Amendment No. 2) Regulations 2003( 8 ), regulations 4(a), 5(a) and 9(2) and (4) are revoked.
(2)The Insurance Companies (Taxation of Reinsurance Business) (Amendment) Regulations 2004( 9 ) are revoked.
Ann Chant
Dave Hartnett
Two of the Commissioners of Inland Revenue
1st September 2004
1988 c. 1 . Section 442A was inserted by paragraph 34 of Schedule 8 to the Finance Act 1995 (c. 4) .
1995 c. 4 . Paragraph 58 makes provision as to the accounting periods in respect of which the powers conferred by the amendments made by the Schedule may be exercised.
S.I. 1995/1730 .
Regulation 3 was amended by S.I. 1996/1621 .
Regulation 4 was amended by S.I. 2003/2573 .
Regulation 5 was amended by S.I. 2003/2573 .
Regulation 9 was amended by S.I. 2003/2573 .
S.I. 2003/2573 .
S.I. 2004/2189 .