The Individual Savings Account (Insurance Companies) Regulations 1998

Explanatory Note

(This note is not part of the Regulations)

These Regulations, which come into force on 6th April 1999, make provision in relation to the individual savings account business of insurance companies (“ISA business”).

Regulation 1 provides for citation and commencement, and regulation 2 for interpretation.

Regulation 3 defines ISA business for the purposes of the Regulations.

Regulation 4 provides that the abolition of tax credits payable in respect of distributions made to companies resident in the United Kingdom on and after 6th April 1999 shall not have effect as respects distributions made to insurance companies before 6th April 2004 in respect of investments relating to ISA business of those companies.

Regulations 5 to 21 modify various provisions of the Income and Corporation Taxes Act 1988 so as to include references to ISA business.

Regulations 22 and 23 modify sections 212(2) and 214A(11)(a) of the Taxation of Chargeable Gains Act 1992 so as to include a reference to individual savings account business in each of those sections.

Regulations 24 and 25 make similar modifications to the Manufactured Payments and Transfer of Securities (Tax Relief) Regulations 1995 (S.I. 1995/3036) and the Friendly Societies (Modification of the Corporation Tax Acts) Regulations 1997 (S.I. 1997/473).