3079.This section introduces the Part. It is new.
3080.This Act does not rewrite section 76 of ICTA (expenses of insurance companies). Instead, it inserts sections 76ZA to 76ZO into ICTA, to provide a version of the trading income rules adapted to insurance companies to which section 76 of ICTA applies. For companies carrying on life assurance business, but not charged in accordance with the trading income rules, this Part does not apply. Instead, the rules in section 76 apply.
3081.This section sets out which companies are within the rules in this Part of the Act. It is based on sections 75 and 130 of ICTA.
3082.Subsection (2) is the rule that a credit union is not a company with investment business.
3083.The rule applies for the purposes of this Part of the Act. So there is no possibility of a charge on a credit union under section 1254 on a FISMA repayment. See Change 80 in Annex 1.
3084.Subsection (3) is a signpost to section 1219(2) which restricts the application of this Part of the Act to the part of the company’s business which is an investment business. But that restriction does not affect the basic definition of a “company with investment business”.
3085.Schedule 1 to this Act amends section 18 of CAA so that “managing the investments of a company with investment business” in section 15(1)(g) of CAA is defined by reference to sections 1218 and 1219 of this Act. So there is no need for a separate rule to the effect that a credit union is not a company with investment business for the purposes of CAA.