Finance Act 1989

85 Charge of certain receipts of basic life assurance business. E+W+S+N.I.

(1) Subject to subsection (2) below, where the profits of an insurance companyin respect of its life assurance business are not charged under Case I ofSchedule D, there shall be chargeable under Case VI of that Schedule anyreceipts referable to the company’s [F1 basic life assurance and general annuity business]—

(a) which, if those profits were charged under Case I of Schedule D, would betaken into account in computing those profits; and

(b) which would not be within the charge to tax (except under Case I ofSchedule D) apart from this section;

and for the purposes of paragraph (a) above, the provisions of section83 above as to the manner in which any item is to be taken into account shallbe disregarded.

(2) The receipts referred to in subsection (1) above do not include—

(a) any premium; or

(b) any sum received by virtue of a claim under an insurance contract(including a re-insurance contract); or

(c) any repayment or refund (in whole or in part) of a sum disbursed by thecompany as acquisition expenses falling within paragraphs (a) to (c) ofsubsection (1) of section 86 below; or

[F2 (ca) any reinsurance commission; or]

(d) any sum which is taken into account under section 76(1)(a) of the TaxesAct 1988 as a deduction from the amount treated as expenses of management ofthe company; or

(e) any sum which is not within the charge to tax (except under Case I ofSchedule D) because of an exemption from tax.

(3) This section has effect with respect to the receipts of accounting periodsbeginning on or after 1st January 1990 (including the 1990 component period).

Annotations:

Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

F1 Words in s. 85(1) substituted(for accounting periods beginning on or after 01.01.1992) by Finance Act 1991 (c. 31, SIF 63:1), s. 48, Sch. 7 paras.12, 18.

F2 Finance Act 1990 (c. 29), s. 44(1)(4)—deemedalways to have had effect

Modifications etc. (not altering text)

C1 S. 85(1) modified (retrospective to 1.1.1995) by S.I. 1997/473, regs. 1(2), 38