Statutory Instruments

2000 No. 2075

INCOME TAX

The Individual Savings Account (Insurance Companies) (Amendment) Regulations 2000

Made

28th July 2000

Laid before the House of Commons

1st August 2000

Coming into force

22nd August 2000

The Treasury, in exercise of the powers conferred on them by section 333B(1) and (7) of the Income and Corporation Taxes Act 1988(1), hereby make the following Regulations:

Citation and commencement

1. These Regulations may be cited as the Individual Savings Account (Insurance Companies) (Amendment) Regulations 2000 and shall come into force on 22nd August 2000.

Interpretation

2. In these Regulations "the principal Regulations" means the Individual Savings Account (Insurance Companies) Regulations 1998(2) and " regulation" means a regulation of the principal Regulations.

Amendments to the principal Regulations

3. After regulation 12 there shall be inserted the following regulation-

"12A. In section 434(1A)(3) there shall be added at the end the words "but this subsection shall not apply in relation to distributions in respect of which an insurance company is entitled to a tax credit in respect of its individual savings account business."."

4. For regulation 14 there shall be substituted the following regulation-

"14. In section 438-

(a)in subsection (1)(4) there shall be added at the end the words " or individual savings account business";

(b)subsection (4)(5) shall be omitted.".

5. After regulation 21 there shall be inserted the following regulation-

"21A. In paragraph 9(1) of Schedule 19AC(6), in the notionally inserted subsection (1D) of section 434, there shall be added at the end the words "but this subsection shall not apply in relation to distributions in respect of which an overseas life insurance company is entitled to a tax credit in respect of its individual savings account business."."

Jim Dowd

Greg Pope

Two of the Lords Commissioners of Her Majesty's Treasury

28th July 2000

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Individual Savings Account (Insurance Companies) Regulations 1998 (S.I. 1998/1871). The amendments ensure that an insurance company is entitled to a tax credit in respect of distributions received relating to its individual savings account business, and that any such credit is brought into account in computing the insurance company's profit from its individual savings account business.

(1)

1988 c. 1; section 333B was inserted by section 77(1) of the Finance Act 1998 (c. 36).

(2)

S.I. 1998/1871.

(3)

Subsections (1) to (1B) of section 434 of the Income and Corporation Taxes Act 1988 were substituted for subsection (1) by paragraph 3(2) of Schedule 3 to the Finance (No. 2) Act 1997 (c. 58) and subsection (1A) was amended by paragraph 27 of Schedule 4, and Part II(10) of Schedule 8, to the Finance (No. 2) Act 1997 with effect in relation to distributions made on or after 6th April 1999.

(4)

Section 438(1) was amended by paragraph 4(2) of Schedule 8 to the Finance Act 1995 (c. 4).

(5)

Section 438(4) was substituted by paragraph 6(3) of Schedule 3 to the Finance (No. 2) Act 1997.

(6)

Schedule 19AC to the Income and Corporation Taxes Act 1988 was inserted by paragraph 1 of Schedule 9 to the Finance Act 1993 (c. 34), and sub-paragraph (1) of paragraph 9 of Schedule 19AC was substituted by paragraph 13(6) of Schedule 3 to the Finance (No. 2) Act 1997, and amended by paragraph 29(2) of Schedule 4, and Part II(10) of Schedule 8, to the Finance (No. 2) Act 1997 with effect in relation to distributions made on or after 6th April 1999.