The Insurance Companies (Taxation of Re-insurance Business) Regulations 2018 No. 538

PART 1 Introduction

Interpretation

2.  In these Regulations—

“the Act” means the Finance Act 2012;

“90% subsidiary” means a body corporate where 90% or more of its ordinary share capital is owned directly, or indirectly, by another body corporate;

“backing assets” means the assets which back the liabilities(1) of those policies or contracts which are referable to BLAGAB and are the subject of a re-insurance arrangement;

“non-investment risk arrangement” means a re-insurance arrangement which wholly concerns the re-insurance of risk other than risk in respect of the investment return;

“re-insurance arrangement” means an arrangement by which an insurance company re-insures any risk in respect of a policy or contract attributable to its basic life assurance and general annuity business (“BLAGAB”).

(1)

See section 139(1) of the Act.