The Finance Act 2004, Sections 38 to 40 and 45 and Schedule 6 (Consequential Amendment of Enactments) Order 2004

Amendments to secondary legislation

The Income Tax (Manufactured Overseas Dividends) Regulations 1993

73.—(1) The Income Tax (Manufactured Overseas Dividends) Regulations 1993(1) are amended as follows.

(2) Regulation 4(1)(c) is revoked.

(3) In regulation 5(1A) after “person” insert “who is not within the charge to corporation tax and”.

The Insurance Companies (Taxation of Reinsurance Business) Regulations 1995

74.—(1) The Insurance Companies (Taxation of Reinsurance Business) Regulations 1995(2) are amended as follows.

(2) In regulation 3(1)(3), in paragraph (b) of the definition of C for the words from “deducted” to the end of the definition, substitute “charged to tax under section 85 of the Finance Act 1989”.

(3) In regulation 6(3)(e)(ii)(4) for “deducted” to the end of the sub-paragraph, substitute “charged to tax under section 85 of the Finance Act 1989.”.

Friendly Societies (Modification of the Corporation Tax Acts) Regulations 1997

75.  After regulation 5 of the Friendly Societies (Modification of the Corporation Tax Acts) Regulations 1997(5) insert—

“Modifications of section 76 of the Taxes Act

5A.— (1) Paragraphs (2) to (6) prescribe modifications to section 76 of the Taxes Act so far as it applies to the life or endowment business carried on by friendly societies.

(2) In subsection (2), after “referable to” insert “taxable”;

(3) In subsection (3), for “line 12, 22 or 25 of Form 40 (the revenue account)” substitute “line 12 or 25 of Form 40 (the revenue account) or column 1 of line 49 of Form 41 (long-term insurance business: analysis of premiums and expenses)”;

(4) In paragraph (a) of Step 1 in subsection (7), after “attributable to” insert “taxable”;

(5) In subsection (8)—

(a) after “attributable to” insert “taxable”;

(b) in paragraph (b), for “the Prudential Sourcebook (Insurers)” substitute “the Prudential Sourcebook (Friendly Societies)”;

(6) In subsection (11), for “basic life assurance” substitute “taxable basic life assurance” wherever the words occur.

(7) The modifications in paragraphs (3) and (5)(b) only apply to a friendly society to which Chapter 5 of the Prudential Sourcebook (Friendly Societies) applies.”.

The Open-ended Investment Companies (Tax) Regulations 1997

76.—(1) The Open-ended Investment Companies Regulations 1997(6) are amended as follows.

(2) Regulation 10(3) is revoked.

(3) In regulation 25(4), for sub-paragraph (a) substitute—

“(a) section 75(9) (management expenses carried forward),”.

The European Single Currency (Taxes) Regulations 1998

77.—(1) The European Single Currency (Taxes) Regulations 1998(7) are amended as follows.

(2) In regulation 6—

(a) in paragraph (1), for the words from “shall be treated” to the end substitute “shall be treated in accordance with paragraph (1A)”;

(b) after paragraph (1) insert—

“(1A) If the company—

(a) is a company with investment business, the costs shall be treated as expenses of management deductible under section 75 to the extent they otherwise would not be, or

(b) is one in relation to which section 76 applies, the costs shall be treated for the purposes of that section as expenses payable which fall to be brought into account at Step 1 in subsection (7) of that section to the extent that they otherwise would not be.”.

(c) paragraphs (2) and (3) are revoked; and

(d) in paragraph (4), for “has the meaning” substitute—

• “and “company with investment business” have the meanings”.

The Insurance Companies (Capital Redemption Business)(Modification of the Corporation Tax Acts) Regulations 1999

78.  Regulation 4 of the Insurance Companies (Capital Redemption Business) (Modification of the Corporation Tax Acts) Regulations 1999(8) is revoked.

(1)

S.I. 1993/2004. There are amendments to regulation 4 which are not relevant for present purposes. Regulation 5 was amended by regulation 6 of S.I. 2003/2582.

(2)

S.I. 1995/1730.

(3)

Regulation 3 was amended by S.I. 1996/1621.

(4)

There are amendments to regulation 6 which are not relevant for present purposes.

(5)

S.I. 1997/473.

(6)

S.I. 1997/1154. There are amendments which are not relevant for present purposes.

(7)

S.I. 1998/3177.

(8)

S.I. 1999/498.