Insurance Companies (Taxation of Reinsurance Business) (Amendment) Regulations 1996
1996 No. 1621
INCOME TAX
The Insurance Companies (Taxation of Reinsurance Business) (Amendment) Regulations 1996
Made 24th June 1996
Laid before the House of Commons 24th June 1996
Coming into force 15th July 1996
The Commissioners of Inland Revenue, in exercise of the powers conferred on them by sections 431C and 442A(2), (3), (5) and (6) of the Income and Corporation Taxes Act 19881, and paragraph 58 of Schedule 8 to the Finance Act 19952, hereby make the following Regulations:
Citation, commencement and effect
1.—(1) These Regulations may be cited as the Insurance Companies (Taxation of Reinsurance Business) (Amendment) Regulations 1996 and shall come into force on 15th July 1996.
(2) Regulations 3, 4 and 5(b) shall have effect with respect to accounting periods beginning on or after 1st January 1995.
(3) Regulation 5(a) shall have effect with respect to accounting periods ending on or after 15th July 1996.
Interpretation
2. In these Regulations “the principal Regulations” means the Insurance Companies (Taxation of Reinsurance Business) Regulations 19953, and “regulation” means a regulation of the principal Regulations.
Amendments to the principal Regulations
3. In regulation 3 for the words from “C is” to “Taxes Act” there shall be substituted—
“C is the aggregate of—
(a) so much of any amount payable by the reinsurer to the cedant company during that accounting period as a result of the death, illness, or infirmity of, or accident to, any person as does not exceed the amount which would have been paid by the reinsurer if the policy had been surrendered immediately before the death, illness, or infirmity of, or accident to, that person, and
(b) other amounts paid by the reinsurer to the cedant company during that accounting period, being sums paid by way of commission or as a result of the surrender in whole or in part of the rights under the policy or otherwise, but excluding any sum which forms part of the relevant profits of the cedant company or is paid by way of commission that has been deducted from expenses of management pursuant to section 76(1) (ca) of the Taxes Act4.”
4. In regulation 5—
(a) in paragraph (1) for the words “at the rate prescribed” there shall be substituted “at the appropriate rate or rates prescribed”;
(b) for paragraph (2) there shall be substituted the following paragraph—
“2 The rates prescribed by this paragraph are—
(a) as respects an accounting period ending before the financial year 1996, the rate applicable in accordance with section 88(1) of the Finance Act 19895;
(b) as respects an accounting period commencing in or after the financial year 1996, the rate applicable in accordance with section 88A(1) of the Finance Act 19896;
(c) as respects an accounting period part of which falls in the financial year 1995 (“the 1995 part”) and part in the financial year 1996 (“the 1996 part”), the rate applicable in accordance with section 88(1) of the Finance Act 1989 in relation to the proportion of the amount of the investment return attributable to the 1995 part, and the rate applicable in...
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