Modifications of the Finance Act 198926

1

Modify section 8924 (policy holders’ share of profits) as follows.

2

In subsection (1B)—

a

after “business” insert—

so far as that income and those gains fall to be attributed, for the purposes of section 11AA(2) of the Taxes Act 1988, to the permanent establishment in the United Kingdom through which the company carries on life assurance business

b

at the end insert—

so far as those amounts and that deduction fall to be attributed, for the purposes of section 11AA(2) of the Taxes Act 1988, to that permanent establishment

3

In subsection (2), in paragraph (b), after “distributions” insert—

, so far as those distributions fall to be attributed, for the purposes of section 11AA(2) of the Taxes Act 1988, to the permanent establishment in the United Kingdom through which the company carries on life assurance business,

4

In subsection (5) after “business” insert “carried on at a permanent establishment in the United Kingdom”.

5

In subsection (6) after “provide” insert “and subject to subsection (6A)”.

6

After subsection (6) insert—

6A

In the case of an EEA firm or a Treaty firm, in this section “brought into account” means brought into account in the technical accounts included in the IAD accounts in respect of the whole of the company’s long-term business or such of that business as is carried on through the permanent establishment in the United Kingdom through which the company carries on life assurance business.