The Insurance Companies (Gilt-edged Securities) (Periodic Accounting for Tax on Interest) (Amendment) Regulations 1996

Amendments to the principal Regulations

3.—(1) Regulation 6 (which inserts paragraph 1A in Schedule 19AB of the Income and Corporation Taxes Act 1988(1)) shall be amended as follows.

(2) In sub-paragraph (12) of the inserted paragraph 1A, for the words “Where the basic rate” there shall be substituted the words “Subject to sub-paragraph (12A) below, where the lower rate”.

(3) After sub-paragraph (12) of the inserted paragraph 1A there shall be inserted the following sub-paragraph—

“(12A) In the case of a provisional repayment period which begins before but includes 6th April 1996, the amount equal to the tax on the appropriate portion of the amount of excess gilt interest received mentioned in sub-paragraph (1) above shall be ascertained after considering each of the amounts A, B and C specified in sub-paragraph (11) above separately for the period before 6th April 1996 and for the period after 5th April 1996.”

(1)

1988 c. 1; Schedule 19AB was inserted by Schedule 8 to the Finance Act 1991 (c. 31), and amended by section 103(2) (h) of, and Part III(9) of Schedule 23 to, the Finance Act 1993 (c. 34), by paragraph 12(1)(b) of Schedule 8 to the Finance Act 1995 and by Part I of Schedule 34 to the Finance Act 1996.