Statutory Instruments
2008 No. 2679
Corporation Tax
The Insurance Companies (Reserves) (Tax) (Amendment) Regulations 2008
Made
9th October 2008
Laid before the House of Commons
9th October 2008
Coming into force
30th October 2008
The Treasury make the following Regulations in exercise of the powers conferred by sections 444BB(1), (3), (4) and (5), 444BC and 444BD(1), (4) and (5) of the Income and Corporation Taxes Act 1988( 1 ).
Citation, commencement and effect
1. —(1) These Regulations may be cited as the Insurance Companies (Reserves) (Tax) (Amendment) Regulations 2008 and shall come into force on 30th October 2008.
(2) These Regulations shall have effect in relation to accounting periods beginning on or after 6th April 2008 and ending on or after the day on which these Regulations come into force.
Amendment to the Insurance Companies (Reserves) (Tax) Regulations 1996
2.The Insurance Companies (Reserves) (Tax) Regulations 1996( 2 ) are amended as follows.
Amendments of regulation 2 (interpretation)
3. —(1) Paragraph (1) of regulation 2 is amended as follows.
(2) In the definition of “the Board” for “Commissioners of Inland Revenue” substitute “Commissioners for Her Majesty’s Revenue and Customs”.
(3) Omit the definition of “branch”.
(4) In the definition of “EEA firm”( 3 ) after “paragraph 5(d)” insert “or (da)( 4 )”.
(5) In the definition of “equalisation reserve rules”( 5 ) for “Chapter 7.5 of the Integrated Prudential Sourcebook” substitute “Chapter 1.4 of INSPRU”.
(6) Omit the definition of “paragraph 52 method of accounting on a non-annual basis”.
(7) Omit the definition of “the Prudential Sourcebook (Insurers)( 6 )”.
(8) Insert the following definitions in the appropriate places—
“ “INSPRU” means the Prudential Sourcebook for Insurers made by the Financial Services Authority under the Financial Services and Markets Act 2000 ” ( 7 ),
“ “paragraph 58 method of accounting on a non-annual basis” means the method of accounting on a non-annual basis described in paragraph 58 of Schedule 3 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 ( 8 ) ; ” .
Omission of regulation 5 (non-annual accounts: tax returns prepared on an annual basis)
4. Omit regulation 5.
Amendment of regulation 7 (EEA firms and Treaty firms)
5. In regulation 7( 9 ) for “branch”, wherever it occurs, substitute “permanent establishment”.
Amendment of regulation 8A (certain insurance business carried on outside the United Kingdom by a controlled foreign company – non-annual accounts but returns prepared on an annual basis)
6. —(1) Regulation 8A( 10 ) is amended as follows.
(2) In paragraph (1)—
(a) at the end of sub-paragraph (a) insert “and”,
(b) in sub-paragraph (b)—
(i) for “paragraph 52” substitute “paragraph 58”, and
(ii) omit “, but”, and
(c) omit sub-paragraph (c).
(3) Omit paragraph (5).
(4) For paragraph (6) substitute—
“ (6) For the purposes of paragraph (4), accounts are prepared on an accident year basis where the accounts and statements required to be deposited with the Financial Services Authority pursuant to Chapter 9 of IPRU(INS) are prepared using Forms 21, 22 and 23 prescribed by the Accounts and Statements Rules contained in that Chapter. ” .
(5) Insert after paragraph (6)—
“ (7) For the purposes of paragraph (6), “IPRU(INS)” means the Interim Prudential Sourcebook for Insurers made by the Financial Services Authority under the Financial Services and Markets Act 2000. ” .
Amendment of regulation 8B (disapplication of regulations 8 and 8A where controlled foreign company prepares non-annual accounts and final replacement of the technical provision does not take place in conformity with the Companies Act)
7. In paragraph (a) of regulation 8B( 11 ) for “paragraph 52” substitute “paragraph 58”.
Amendment of regulation 9 (United Kingdom branches of companies not resident in the United Kingdom which maintain equalisation reserves by virtue of equalisation reserves rules)
8. —(1) Regulation 9( 12 ) is amended as follows.
(2) For “branch”, wherever it occurs, substitute “permanent establishment”.
(3) In paragraph (2) for “return under section 11 of the Management Act” substitute “company tax return”.
Amendment of regulation 10 (double taxation relief)
9. —(1) Regulation 10( 13 ) is amended follows.
(2) For “branch”, wherever it occurs, substitute “permanent establishment”.
(3) In paragraph (2)(a) for “branches” substitute “permanent establishments”.
Amendment of regulation 14 (application of provisions contained in Part 2 of these Regulations)
10. In regulation 14 omit “5,”.
Steve McCabe
Frank Roy
Two of the Lords Commissioners of Her Majesty’s Treasury
9th October 2008
1988 (c. 1) . Sections 444BB to 444BD were inserted by paragraph 1 of Schedule 32 to the Finance Act 1996 (c. 8) and amended by article 30 of S.I. 2001/3629 . Section 444BB was further amended by section 153(1)(a) of the Finance Act 2003 (c. 14) .
S.I. 1996/2991 ; relevant amending instruments are S.I. 1999/1408 , 2001/3629 , 2002/2409 and 2004/3260 .
The definition of “EEA firm” was substituted for the definition of “EC company” by article 147 of S.I. 2001/3629 .
Paragraph 5(da) of Schedule 3 to the Financial Services and Markets Act 2000 (c. 8) was inserted by paragraph 6(c) of the Schedule to S.I. 2007/3253 .
The definition of “equalisation reserve rules” was inserted by article 147 of S.I. 2001/3629 and substituted by regulation 2 of S.I. 2004/3260 .
The definition of “the Prudential Sourcebook (Insurers)” was inserted by article 147 of S.I. 2001/3629 .
Regulation 7 was amended by articles 149 and 151 of S.I. 2001/3629 , and article 5 of S.I. 2002/1409 .
Regulation 8A was inserted by regulation 7 of S.I. 1999/1408 and amended by article 151 of S.I. 2001/3629 .
Regulation 8B was inserted by regulation 7 of S.I. 1999/1408 .
Regulation 9 was amended by article 151 of S.I. 2001/3629 .
Regulation 10 was amended by article 151 of S.I. 2001/3629 .