SCHEDULE 1Amendments to primary legislation

PART 2Amendments to other primary legislation

Finance Act 200324

1

Section 63 (demutualisation of insurance company) of the Finance Act 2003 M1 is amended as follows.

2

For paragraph (b) of subsection (2) substitute—

b

it is a transfer of business of a general insurance company carried on through a permanent establishment in the United Kingdom and takes place in accordance with authorisation granted outside the United Kingdom for the purposes of the Solvency 2 Directive, and the requirements of subsection (3) and (4) are met in relation to the shares of a company (“the issuing company”) which is either the acquiring company or a company of which the acquiring company is a wholly-owned subsidiary.

3

In subsection (7) omit the following definitions—

a

“the life assurance Directive”;

b

“the 3rd non-life insurance Directive”.

4

In subsection (7) insert at the end—

“the Solvency 2 Directive” means Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II).