54. Amend the Finance Act 1989 in accordance with Articles 55 to 60.
55.—(1) Amend section 82 (calculation of profits) as follows.
(2) In subsection (1)(b) for “its return for the purposes of the Insurance Companies Act 1982” substitute “the return deposited with the Financial Services Authority under section 9.6 of the Prudential Sourcebook (Insurers)”.
(3) After subsection (1) insert—
“(1A) In subsection (1)(b) above “the Prudential Sourcebook (Insurers)” means the Interim Prudential Sourcebook for Insurers made by the Financial Services Authority under the Financial Services and Markets Act 2000.”.
(4) This Article has effect in relation to periods of account ending on or after 1st December 2001.
56.—(1) Amend section 83 (receipts to be brought into account in relation to profits of life assurance business computed under Schedule D, Case I)(1) as follows.
(2) In subsection (6) for paragraph (a) substitute—
“(a)a transfer, under an insurance business transfer scheme, of business which consists of the effecting or carrying out of contracts of long-term insurance;”.
(3) After subsection (6) insert—
“(6A) In subsection (6)(a) above—
“insurance business transfer scheme” means a scheme falling within section 105 of the Financial Services and Markets Act 2000, including an excluded scheme falling within Case 2, 3 or 4 of subsection (3) of that section;
“contracts of long-term insurance” means contracts which fall within Part II of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.”.
(4) This Article has effect in relation to any transfer under a scheme falling within section 105 of the Financial Services and Markets Act 2000, including an excluded scheme falling within Case 2, 3 or 4 of subsection (3) of that section.
57.—(1) In section 83A(2) (meaning of “brought into account”)(2)—
(a)in paragraph (a) for “the Insurance Companies Act 1982” substitute “Chapter 9 of the Prudential Sourcebook (Insurers)”;
(b)in paragraph (b) for “under that Act” substitute “under that Chapter”;
(c)for the words from “Paragraph (b)” to the end substitute “In paragraph (a) “the Prudential Sourcebook (Insurers)” means the Interim Prudential Sourcebook for Insurers made by the Financial Services Authority under the Financial Services and Markets Act 2000.”.
(2) This Article has effect in relation to periods of account ending on or after 1st December 2001.
58.—(1) Amend section 89 (policy holders' share of profits)(3) as follows.
(2) In subsection (6) for “the Insurance Companies Act 1982” substitute “Chapter 9 of the Prudential Sourcebook (Insurers)”.
(3) For subsection (7) substitute—
“(7) In this section—
“Case I profits” means profits computed in accordance with the provisions of the Taxes Act 1988 applicable to Case I of Schedule D;
“the Prudential Sourcebook (Insurers)” means the Interim Prudential Sourcebook for Insurers made by the Financial Services Authority under the Financial Services and Markets Act 2000.”.
(4) This Article has effect in relation to periods of account ending on or after 1st December 2001.
59.—(1) Amend paragraph 1B of Schedule 8A (modification of section 83A in relation to overseas life insurance companies)(4) as follows.
(2) For “the Insurance Companies Act 1982” substitute “Chapter 9 of the Prudential Sourcebook (Insurers)”.
(3) Renumber the existing provision (as amended by paragraph (2)) as sub-paragraph (1) and after that sub-paragraph insert—
“(2) In sub-paragraph (1) “the Prudential Sourcebook (Insurers)” means the Interim Prudential Sourcebook for Insurers made by the Financial Services Authority under the Financial Services and Markets Act 2000.”.
(4) This Article has effect in relation to periods of account ending on or after 1st December 2001.
60.—(1) In the following places for “long term business” substitute “long-term insurance”—
(a)section 83(2)(a), (3) and (8) (in the definition of “add”);
(b)the sidenote to section 83AA and subsections (2) (in the definition of “relevant amount”), (3) and (4) of that section(5);
(c)section 83AB(1) and (3);
(d)paragraph 1A(4) (twice) and (5) of Schedule 8A(6).
(2) In the following provisions for “long term” substitute “long-term”—
(a)section 83A(2)(a);
(b)paragraph 1B of Schedule 8A.
(3) In section 89(5)(a) for “business” substitute “insurance”.
Sections 83 and 83A were substituted for section 83 by paragraph 16(1) of Schedule 8 to the Finance Act 1995 and subsections (3) to (8) of section 83 were substituted for subsection (3) of that section by paragraph 4 of Schedule 31 to the Finance Act 1996.
Section 83A(2) was amended by paragraph 6(2) of Schedule 31 to the Finance Act 1996.
Section 89 was substituted by section 45(3) of the Finance Act 1990.
Schedule 8A was inserted by Schedule 10 to the Finance Act 1993 and paragraph 1B was substituted, together with paragraphs 1, 1A and 1C, for paragraph 1 by paragraph 49(2) of Schedule 8 to the Finance Act 1995.
Section 83AA was inserted, together with section 83AB, by paragraph 5 of Schedule 31 to the Finance Act 1996.
Sub-paragraph (4) of paragraph 1A was amended, and sub-paragraph (5) of that paragraph inserted, by paragraph 8(4) and (5) of Schedule 31 to the Finance Act 1996.