Finance Act 2012

Meaning of contract of “insurance” or “long-term insurance” and “insurance company” U.K.

64 Meaning of “contract of insurance” and “contract of long-term insurance” U.K.

For the purposes of this Part—

• “contract of insurance” has the meaning given by article 3(1) of the FISMA (Regulated Activities) Order 2001, and

• “contract of long-term insurance” means a contract which falls within Part 2 of Schedule 1 to that Order.

65 Meaning of “insurance company” U.K.

(1) This section defines for the purposes of this Part what is meant by an “insurance company”.

(2) A person who carries on the activity of effecting or carrying out contracts of insurance is an “insurance company” if—

(a) the person has permission under Part 4 of FISMA 2000 to carry on that activity,

F1 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) The above definition is subject to the following qualifications—

(a) a friendly society within the meaning of Part 3 is not an insurance company, and

(b) an insurance special purpose vehicle (see section 139) is an insurance company only if, in addition to falling within subsection (2)(a), F3 ... it is a BLAGAB group re-insurer.

(4) A person is a “BLAGAB group re-insurer” if for an accounting period—

(a) the person carries on basic life assurance and general annuity business,

(b) it is not the case that substantially all of the person's long-term business is long-term business other than basic life assurance and general annuity business, and

(c) all of its life assurance business is re-insurance business of a description which is excluded business for the purposes of section 57(2)(e).

Textual Amendments

F1 S. 65(2)(b) omitted (31.12.2020) by virtue of The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 21(2)(a) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)

F2 S. 65(2)(c) omitted (31.12.2020) by virtue of The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 21(2)(a) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)

F3 Words in s. 65(3)(b) omitted (31.12.2020) by virtue of The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 21(2)(b) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)

Modifications etc. (not altering text)

C1 S. 65 modified (with effect in accordance with Sch. 3 paras. 30-36 of the amending Act) by 2010 c. 8, s. 94(3) (as inserted by Finance (No. 2) Act 2023 (c. 30), Sch. 3 para. 28(1))