|
| |
|
(3) | In this paragraph “section 440A securities” has the same meaning as in |
| |
section 210B of TCGA 1992. |
| |
Carry-forward of trading losses and excess management expenses |
| |
29 (1) | Any unused losses arising to an insurance company in an accounting period |
| |
ending before 1 January 2013 from gross roll-up business may be relieved in |
| 5 |
subsequent accounting periods in accordance with section 45 of CTA 2010 |
| |
(carry forward of trade loss against subsequent trade profits) as if they were |
| |
losses that had arisen from non-BLAGAB long-term business. |
| |
(2) | For this purpose a loss is “unused” so far as no relief has been given for it |
| |
| 10 |
(a) | section 436A of ICTA (including as applied by any provision of Part |
| |
2 of Schedule 7 to FA 2007), or |
| |
(b) | any other provision of the Corporation Tax Acts. |
| |
30 (1) | Any unused losses arising to an insurance company in an accounting period |
| |
ending before 1 January 2013 from PHI business may be relieved in |
| 15 |
subsequent accounting periods in accordance with section 45 of CTA 2010 as |
| |
if they were losses that had arisen from non-BLAGAB long-term business. |
| |
(2) | For this purpose a loss is “unused” so far as, but for this Part of this Act, it |
| |
would have been available for carry forward under section 45 of CTA 2010 |
| |
for use in relation to profits of the PHI business for subsequent accounting |
| 20 |
| |
31 (1) | The appropriate part of any unused life assurance trade losses arising to an |
| |
insurance company in an accounting period ending before 1 January 2013 is |
| |
to be treated for the purposes of section 124 as if it were the unrelieved loss |
| |
available for relief in subsequent accounting periods in accordance with that |
| 25 |
| |
(2) | A “life assurance trade loss” means a loss arising to an insurance company |
| |
from life assurance business which is calculated in accordance with the life |
| |
assurance trade profits provisions. |
| |
(3) | A life assurance trade loss is “unused” so far as no relief is given for it |
| 30 |
| |
(a) | section 85A or 89 of FA 1989, or |
| |
(b) | any other provision of the Corporation Tax Acts. |
| |
(4) | The “appropriate” part of any unused life assurance trade losses is the |
| |
amount (if any) by which— |
| 35 |
(a) | the amount of the unused life assurance trade losses, exceeds |
| |
(b) | the amount of unused losses arising to an insurance company in an |
| |
accounting period ending before 1 January 2013 from gross roll-up |
| |
business (with the definition of “unused” in paragraph 29(2) |
| |
| 40 |
32 (1) | This paragraph applies if, but for this Part of this Act, an amount would have |
| |
been carried forward to an accounting period of an insurance company |
| |
under section 76(12) or (13) of ICTA (expenses of insurance companies). |
| |
(2) | The amount is to be treated for the purposes of step 5 of section 76 as an |
| |
expense from a previous accounting period carried forward as a result of |
| 45 |
|
| |
|
| |
|
section 73 to the accounting period of the company beginning on 1 January |
| |
| |
33 (1) | This paragraph applies if, but for this Part of this Act, any amount of |
| |
expenses would, as a result of section 86(8) and (9) of FA 1989 (relief for |
| |
fraction of acquisition expenses for earlier accounting periods), have been |
| 5 |
relieved in an accounting period of an insurance company beginning on or |
| |
| |
(2) | Relief is to continue to be given for the expenses in question as follows— |
| |
(a) | the amount of the relief for each accounting period is to be |
| |
determined in accordance with section 86(8) and (9) of FA 1989 |
| 10 |
(despite their repeal by this Part of this Act), and |
| |
(b) | the relief is to be given by treating the amount of the expenses as |
| |
deemed BLAGAB management expenses for the accounting periods |
| |
in question for the purposes of section 76. |
| |
(3) | But relief is not to be given as a result of sub-paragraph (2) for any expenses |
| 15 |
for any accounting period (“the period concerned”) if the expenses are |
| |
reversed in the period concerned or any preceding accounting period. |
| |
Relief for BLAGAB trade losses for accounting period beginning on or after 1 January 2013 |
| |
34 (1) | This paragraph applies if— |
| |
(a) | an insurance company carries on basic life assurance and general |
| 20 |
annuity business in an accounting period beginning on or after 1 |
| |
| |
(b) | the company has a BLAGAB trade loss for the accounting period. |
| |
(2) | For the purposes of section 37(6) of CTA 2010 (as applied by section 123) the |
| |
company is to be treated as carrying on that business in a previous |
| 25 |
accounting period if the company carried on life assurance business in that |
| |
| |
Assets of the shareholder fund |
| |
35 (1) | This paragraph applies in relation to assets of an insurance company |
| |
carrying on life assurance business which were assets of the shareholder |
| 30 |
fund of the company for the period of account ending immediately before 1 |
| |
| |
(2) | Those assets are, in relation to times on or after that date, to be regarded for |
| |
the purposes of this Part as assets forming part of the long-term business |
| |
fixed capital of the company (whether or not they would otherwise be so |
| 35 |
| |
(3) | An asset is an “asset of the shareholder fund of an insurance company for the |
| |
period of account ending immediately before 1 January 2013” if it is shown |
| |
in any of lines 11 to 102 of Form 13 in the company’s periodical return |
| |
ending immediately before that date in respect of assets other than those of |
| 40 |
| |
(4) | But an asset is not to be regarded as an asset of the shareholder fund for that |
| |
period of account if for any accounting period ending before 1 January |
| |
| |
(a) | income arising from the asset was, or chargeable gains or allowable |
| 45 |
losses accruing on any part disposal of the asset for the purposes of |
| |
|
| |
|
| |
|
TCGA 1992 were, taken into account for the purposes of the charge |
| |
to corporation tax on the I minus E basis, or |
| |
(b) | income arising from the asset was taken into account in calculating |
| |
the profits of the company in respect of its life assurance business in |
| |
accordance with the provisions applicable for the purposes of the |
| 5 |
taxation of such profits under section 35 of CTA 2009 (charge on |
| |
| |
| |
| |
General transitional provision in relation to provisions re-enacted in Part 2 of this Act |
| 10 |
36 (1) | This paragraph applies where any provision of this Part of this Act re-enacts |
| |
(with or without modification) an enactment repealed by this Part of this |
| |
| |
(2) | The repeal and re-enactment does not affect the continuity of the law. |
| |
(3) | Any subordinate legislation or other thing which— |
| 15 |
(a) | has been made or done, or has effect as if made or done, under or for |
| |
the purposes of the repealed provision, and |
| |
(b) | is in force or effective in relation to accounting periods of insurance |
| |
companies ending on 31 December 2012, |
| |
| has effect in relation to subsequent accounting periods of insurance |
| 20 |
companies as if made or done under or for the purposes of the |
| |
corresponding provision of this Part of this Act. |
| |
(4) | Any reference (express or implied) in any enactment, instrument or |
| |
document to a provision of this Part of this Act is to be read as including, in |
| |
relation to times, circumstances or purposes in relation to which the |
| 25 |
corresponding repealed provision had effect, a reference to that |
| |
| |
| This sub-paragraph applies only so far as the context permits. |
| |
(5) | Any reference (express or implied) in any enactment, instrument or |
| |
document to a repealed provision is to be read, in relation to times, |
| 30 |
circumstances or purposes in relation to which the corresponding provision |
| |
of this Part of this Act has effect, as a reference or (as the context may require) |
| |
as including a reference to that corresponding provision. |
| |
| This sub-paragraph applies only so far as the context permits. |
| |
(6) | This paragraph is subject to any specific transitional, transitory or saving |
| 35 |
provision made by or under this Schedule. |
| |
(7) | The generality of this paragraph is not to be affected by specific transitional, |
| |
transitory or saving provision made by or under this Schedule. |
| |
(8) | This paragraph has effect instead of section 17(2) of the Interpretation Act |
| |
| 40 |
|
| |
|
| |
|
Power to make supplementary transitional provision etc |
| |
37 (1) | The Treasury may by regulations make further transitional, transitory or |
| |
saving provision in connection with the coming into force of any of the |
| |
provisions of this Part of this Act. |
| |
(2) | The provision that may be made by the regulations includes provision |
| 5 |
(whether by way of textual amendment or otherwise) altering or |
| |
supplementing the effect of any provision made by or under this Schedule. |
| |
(3) | The regulations may be made so as to have effect in relation to any period |
| |
beginning before but ending on or after the day on which the regulations are |
| |
made (as well as in relation to periods no part of which falls before that day). |
| 10 |
38 | Any regulations made by the Treasury under any provision of this Schedule |
| |
| |
(a) | make different provision for different cases or circumstances, and |
| |
(b) | contain incidental, supplementary, consequential, transitional, |
| |
transitory or saving provision. |
| 15 |
| |
39 | The following expressions have the same meaning in this Schedule as they |
| |
have in Chapter 1 of Part 12 of ICTA— |
| |
“brought into account” (except in paragraph 24), |
| |
“gross roll-up business”, |
| 20 |
| |
“the life assurance trade profits provisions”, |
| |
| |
| |
| 25 |
| |
| |
| |
Part 3: consequential amendments |
| |
Income and Corporation Taxes Act 1988 |
| |
1 | ICTA is amended as follows. |
| 30 |
2 | Omit section 459 (unregistered friendly societies: exemption from tax). |
| |
3 | Omit section 460 (exemption from tax in respect of life or endowment |
| |
| |
4 | Omit section 461 (taxation in respect of other business). |
| |
5 | Omit sections 461A to 461C (taxation in respect of other business: |
| 35 |
incorporated friendly societies qualifying for exemption). |
| |
6 | Omit section 461D (transfers of business). |
| |
7 | Omit section 462 (conditions for tax exempt business). |
| |
|
| |
|
| |
|
8 | Omit section 463 (long-term business of friendly societies: application of |
| |
| |
9 | Omit section 464 (maximum benefits payable to members). |
| |
10 | Omit section 465 (old societies). |
| |
11 | Omit section 465A (assets of branch of registered friendly society to be |
| 5 |
treated as assets of society after incorporation). |
| |
12 | Omit section 466 (interpretation of Chapter 2 of Part 12). |
| |
13 (1) | Schedule 15 (qualifying policies) is amended as follows. |
| |
| |
(a) | in sub-paragraphs (1) and (4)(c), for “tax exempt life or endowment |
| 10 |
business” substitute “exempt BLAGAB or eligible PHI business”, |
| |
(b) | in sub-paragraph (8)(b)(i), for “a new society” substitute “a society |
| |
other than an old society”, and |
| |
(c) | in sub-paragraph (8)(b)(ii), for “a society other than a new society” |
| |
substitute “an old society”. |
| 15 |
(3) | In paragraph 4(3)(b)(ii), for “a new society” substitute “a society other than |
| |
| |
| |
| |
(a) | in sub-paragraph (1)— |
| 20 |
(i) | omit “(as defined in section 466)” in both places, and |
| |
(ii) | for “tax exempt life or endowment business” substitute |
| |
“exempt BLAGAB or eligible PHI business”, and |
| |
(b) | in sub-paragraph (2), for “section 464” substitute “section 160 of the |
| |
| 25 |
(6) | After paragraph 6 insert— |
| |
| |
(a) | which is used in any provision made by any of paragraphs |
| |
| |
(b) | which is used in Part 3 of the Finance Act 2012, |
| 30 |
| has the same meaning in that provision as it has in that Part.” |
| |
Taxation of Chargeable Gains Act 1992 |
| |
14 | TCGA 1992 is amended as follows. |
| |
15 | In section 100(2B)(b) (exemption for authorised unit trusts etc), for “section |
| |
466(2) of the Taxes Act” substitute “section 172 of the Finance Act 2012”. |
| 35 |
16 | In section 171(5) (transfers within a group: general provisions), for “section |
| |
461B of the Taxes Act” substitute “section 165 of the Finance Act 2012”. |
| |
Income Tax (Trading and Other Income) Act 2005 |
| |
17 | ITTOIA 2005 is amended as follows. |
| |
|
| |
|
| |
|
18 (1) | Section 531 (gains from contracts for life insurance etc: cases where income |
| |
tax not treated as paid) is amended as follows. |
| |
(2) | In subsection (3)(a), for “tax exempt life or endowment business” substitute |
| |
“exempt BLAGAB or eligible PHI business”. |
| |
(3) | In subsection (4), for the definition of “tax exempt life or endowment |
| 5 |
| |
““exempt BLAGAB or eligible PHI business” has the same |
| |
meaning as in Part 3 of FA 2012 (see sections 154 and 155).” |
| |
| |
19 | CTA 2009 is amended as follows. |
| 10 |
20 | In section A1(2) (overview of the Corporation Tax Acts), after paragraph (k) |
| |
(as inserted by paragraph 136(b) of Schedule 16 to this Act) insert “, and |
| |
(l) | Part 3 of that Act (friendly societies carrying on long-term |
| |
| |
21 | In section 564(1) (section 563: interpretation), for “section 460 of ICTA” |
| 15 |
substitute “section 158 of FA 2012”. |
| |
22 | In section 931S(3) (company distributions: meaning of “small company”), in |
| |
the definition of “friendly society”, for “section 466(2) of ICTA” substitute |
| |
“section 172 of FA 2012”. |
| |
| 20 |
23 | In consequence of the amendments made by this Schedule, omit the |
| |
| |
| |
(i) | section 49(1) to (4), |
| |
| 25 |
(iii) | paragraph 6 of Schedule 9, |
| |
(b) | in FA 1991, paragraphs 1 to 3 of Schedule 9, |
| |
(c) | in FA 1995, paragraphs 1 and 2 of Schedule 10, |
| |
(d) | in FA 1996, section 171, |
| |
| 30 |
| |
(ii) | paragraphs 40 and 43 of Schedule 7, and |
| |
| |
| |
| 35 |
| |
|
| |
|