The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001

the Insurance Companies (Reserves) (Tax) Regulations 1996 (S.I. 1996/2991)

Introduction

146.  Amend the Insurance Companies (Reserves) (Tax) Regulations 1996 in accordance with Articles 147 to 151.

Interpretation

147.—(1) Amend regulation 2(1) (interpretation) as follows.

(2) After the definition of “branch” insert—

• ““company tax return” has the meaning given by paragraph 3(1) of Schedule 18 to the Finance Act 1998;”

(3) For the definition of “EC Company” substitute—

““EEA firm” means an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to the Financial Services and Markets Act 2000;”.

(4) After the definition of “equivalent reserve” insert—

““equalisation reserves rules” means the rules in Chapter 6 of the Prudential Sourcebook (Insurers);”.

(5) Omit the definition of “the Management Act”.

(6) After the definition of “paragraph 52 method of accounting on a non-annual basis” insert—

““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;”.

(7) In the definition of “return period” for “17 of the 1982 Act” substitute “9.3 of the Prudential Sourcebook (Insurers)”.

(8) Omit the definition of “section 34A regulations”.

(9) After the definition of “the Taxes Act” insert—

““Treaty firm” means a firm which has permission under paragraph 4 of Schedule 4 to the Financial Services and Markets Act 2000 (as a result of qualifying for authorisation under paragraph 2 of that Schedule) to effect or carry out contracts of insurance in the United Kingdom and, in this definition, “contract of insurance” has the meaning given by Article 3(1) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;”.

(10) Omit the definition of “the 1982 Act”.

(11) The amendments made by paragraphs (2), (4) to (8) and (10) above have effect in relation to periods of account ending on or after 1st December 2001.

Non-annual accounts: tax returns prepared on an annual basis

148.—(1) Amend regulation 5 (non-annual accounts: tax returns prepared on an annual basis) as follows.

(2) In paragraph (1)—

(a) in sub-paragraph (a) for “17 of the 1982 Act” substitute “9.3 of the Prudential Sourcebook (Insurers)”;

(b) in sub-paragraph (b) for “return under section 11 of the Management Act” substitute “company tax return”.

(3) In paragraph (4)—

(a) for “Secretary of State pursuant to section 22 of the 1982 Act” substitute “Financial Services Authority pursuant to Chapter 9 of the Prudential Sourcebook (Insurers)”;

(b) for “prescribed by the Insurance Companies (Accounts and Statements) Regulations 1996” substitute “prescribed by the Accounts and Statements Rules contained in that Chapter”.

(4) This Article has effect in relation to periods of account ending on or after 1st December 2001.

EEA firms and Treaty firms

149.—(1) For the heading to regulation 7 (EC companies) substitute “EEA firms and Treaty firms” and amend that regulation as follows.

(2) In paragraph (1)(a) for “EC Company” substitute “EEA firm or a Treaty firm”.

(3) In paragraph (2) for “return under section 11 of the Management Act” substitute “company tax return”.

(4) The amendment made by paragraph (3) has effect in relation to periods of account ending on or after 1st December 2001.

Certain business carried on outside the United Kingdom

150.—(1) Amend regulation 8 (certain business carried on outside the United Kingdom)(1) as follows.

(2) In paragraph (1)(a) omit “(within the meaning of the 1982 Act)”.

(3) After paragraph (5) add—

“(6) In paragraph (1)(a) “insurance business” means business which consists of the effecting or carrying out of contracts of insurance and, for the purposes of this definition, “contract of insurance” has the meaning given by Article 3(1) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.”.

Miscellaneous amendments

151.—(1) For “section 34A regulations” substitute “equalisation reserves rules” in the following places—

(a) regulation 3(3)(a);

(b) regulation 4(1)(a);

(c) regulation 5(2) (twice);

(d) regulation 6(1), (2) and (4);

(e) regulation 7(1)(a), (3) and (6);

(f) regulation 8(1)(a), (2) and (4);

(g) regulation 8A(3)(2);

(h) the heading to regulation 9 and paragraph (3) of that regulation;

(i) regulation 10(1), (2)(a), (3) and (5);

(j) regulation 12.

(2) This Article has effect in relation to periods of account ending on or after 1st December 2001.

(1)

Regulation 8 was amended by regulation 7(2) of S.I. 1999/1408.

(2)

Regulation 8A was inserted by regulation 7(3) of S.I. 1999/1408.