The Insurance Companies (Calculation of Profits: Policy Holders' Tax) (Amendment) Regulations 2010
| Jurisdiction | UK Non-devolved |
2010 No. 2932
Corporation Tax
The Insurance Companies (Calculation of Profits: Policy Holders’ Tax) (Amendment) Regulations 2010
Made 8th December 2010
Laid before the House of Commons 9th December 2010
Coming into force 31th December 2010
The Treasury make the following Regulations in exercise of the powers conferred by section 82A of the Finance Act 19891.
Citation, commencement and effect
1.—(1) These Regulations may be cited as the Insurance Companies (Calculation of Profits: Policy Holders’ Tax) (Amendment) Regulations 2010 and shall come into force on 31st December 2010.
(2) These Regulations shall have effect in relation to periods of account ending on or after the date on which these Regulations come into force.
Amendment of the Insurance Companies (Calculation of Profits: Policy Holders’ Tax) Regulations 2003
2. The Insurance Companies (Calculation of Profits: Policy Holders’ Tax) Regulations 20032are amended as follows.
Amendment of regulation 2 (calculation of profits: policy holders’ tax)
3. In regulation 2(a) after “regulation 3” insert “or 3A”.
Amendment of regulation 3
4. In regulation 3 at the end as a new paragraph insert—
“This regulation does not apply for a period of account in which there has been a substantial change in the business of the company, except to the extent permitted by regulation 3A(2)(a), or for any subsequent period of account.”.
Insertion of regulation 3A
5. After regulation 3 insert—
“Basis of deduction following a substantial change in the business of a company
3A.—(1) This regulation applies for the purposes of regulation 2 where there has been a substantial change in the long-term business of a company.
(2) Where the change occurred or occurs on or before 31st December 2010—
(a)
(a) in the first period of account ending on or after 31st December 2010 the basis of deduction is either—
(i) the basis specified in regulation 3; or
(ii) such other basis to determine the amount of tax expended on behalf of policy holders or annuitants as is just and reasonable; and
(b)
(b) for any subsequent period of account, the basis of deduction is such basis to determine the amount of tax expended on behalf of policy holders or annuitants as is just and reasonable.
(3) Where the change occurs in a period of account beginning on or after 1st January 2011, the basis of deduction to be used in relation to the period of account in which the change occurs and in relation to each subsequent period of account shall be such basis to determine the amount of tax expended on behalf of policy holders or annuitants as is just and reasonable.
(4) For the purpose of determining whether a substantial change in the long-term business of a company has occurred in relation to—
(a)
(a) the first period of account ending on or after 31st December 2010, the long-term business of the company as at the end of the last day of that period of account is to be compared with the long-term business of the company as at the end of the last day of the first period of account to which these regulations applied; and
(b)
(b) a period of account beginning on or after 1st January 2011, the long-term business of the company as at the end of the last day of the period of account in which the substantial change occurs is to be compared with the long-term business of the company as at the end...
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