15(1)Section 432D of the Taxes Act 1988 is amended as follows.U.K.
(2)In subsection (1) for the words from “life assurance business” to “general annuity business” substitute “ pension business, life reinsurance business, basic life assurance and general annuity business or long term business other than life assurance business ”.
(3)In subsection (2) for “any of the appropriate categories of business” substitute “ any category of business ”.
(4)For subsection (3) substitute—
“(3)For the purposes of subsection (2) above “the relevant fraction”, in relation to a category of business, is the fraction of which—
(a)the numerator is the mean of the opening and closing liabilities of the relevant business so far as referable to the category, reduced by the mean of the opening and closing values of any assets of the relevant business directly referable to the category; and
(b)the denominator is the mean of the opening and closing liabilities of the relevant business, reduced by the mean of the opening and closing values of any assets of the relevant business directly referable to any category of business.
(4)For the purposes of subsections (2) and (3) above, the part of the amount brought into account as the increase or decrease in the value of assets which is directly referable to a category of business is the part referable to the category by virtue of subsection (1) above and assets are directly referable to a category of business if such part of the amount brought into account as the increase or decrease in the value of assets as is attributable to them is so referable.”.