[F1Insurance companies etcU.K.
Textual Amendments
F1Pt. 10: the existing Pt. 10 renumbered as Pt. 11 (except for ss. 375, 376 which are repealed), the existing ss. 372-374, 377-382 renumbered as ss. 499-507 and a new Pt. 10 (ss. 372-498) inserted (with effect in accordance with Sch. 5 para. 25(1)-(3) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 5 para. 1, 10(1)(2)(a)(3) (with Sch. 5 paras. 27, 32-34)
453Insurance entitiesU.K.
(1)This section applies where—
(a)an insurance entity is a member of a worldwide group,
(b)the entity has a subsidiary (“S”) which it holds as a portfolio investment, and
(c)apart from this section, S would be a member of the group.
(2)For the purposes of this Part—
(a)the group does not include S (or its subsidiaries), and
(b)accordingly, none of those entities is regarded as a consolidated subsidiary of any member of the group.
(3)For the purposes of this section an insurance entity holds an interest in an entity as “a portfolio investment” if—
(a)the insurance entity holds the interest as an investment, and
(b)the insurance entity judges the value that the interest has to it wholly or mainly by reference to the market value of the interest.
(4)In this section—
“insurance entity” means—
(a)an insurance company,
(b)a friendly society within the meaning of Part 3 of FA 2012 (see section 172), or
(c)a body corporate which carries on underwriting business as a member of Lloyd's, and
“subsidiary” has the meaning given by international accounting standards.
454Members of Lloyd'sU.K.
In the case of a body corporate carrying on underwriting business as a member of Lloyd's—
(a)any reference in this Part to an amount being brought into account under Part 3 of CTA 2009 as a result of section 297 or 573 of that Act is to be read as a reference to its being brought into account under that Part as a result of section 219 of FA 1994, and
(b)any reference in this Part to a derivative contract is to be read as if subsection (3) of section 226 of FA 1994 (which provides that relevant contracts forming part of a premium trust fund are not derivative contracts) were omitted.]