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Cessation of special investment business as separate business.
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52.—(1) The Principal Act is amended in Chapter 1 of Part 26—
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(a) in section 707—
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(i) subsection (2)—
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(I) by substituting the following for paragraph (a):
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“(a) Where the life assurance business of an assurance company includes more than one of the following classes of business—
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(i) pension business,
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(ii) general annuity business, and
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(iii) life assurance business (excluding such pension business and general annuity business),
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then, for the purposes of the Corporation Tax Acts, the business of each such class shall be treated as though it were a separate business, and subsection (1) shall apply separately to each such class of business as if it were the only business of the company.”,
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(II) by inserting the following after paragraph (b):
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“(c) Any amount of excess referred to in section 83(3) in relation to special investment business, which is available to be carried forward from an accounting period ending in 2002, may for the purposes of that section, be carried forward to the succeeding accounting period and treated as relating to life assurance business, other than new basis business (within the meaning of section 730A(1)).”,
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and
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(ii) by deleting subsection (5)(a)(iii),
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(b) in section 708 by inserting the following after subsection (6):
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“(6A) Acquisition expenses for any accounting period ending on or before 31 December 2002 which relate to special investment business shall, for the purposes of subsection (6), be treated as acquisition expenses which relate to life assurance business (excluding pension business and general annuity business).”,
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(c) in section 711—
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(i) in subsection (1)(c) by deleting “, otherwise than in respect of the special investment fund,”,
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(ii) in subsection (4) by substituting “(excluding pension business and general annuity business)” for “(excluding pension business, general annuity business and special investment business)”,
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(d) in section 713(3) by deleting “, other than special investment business,”,
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(e) in section 719—
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(i) in subsection (1), in the definition of “life business fund” by deleting “other than its special investment business”,
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(ii) in subsection (3)—
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(I) in paragraph (b) by deleting “or special investment business”,
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(II) by substituting “(excluding pension business and general annuity business)” for “(excluding pension business, general annuity business and special investment business)”,
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(iii) in subsection (4)—
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(I) in paragraph (a)(i) by substituting the following for clause (I):
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“(I) assets linked solely to life assurance business (excluding pension business and general annuity business), or pension business, and”,
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and
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(II) in paragraph (b)(i)(I) by deleting “or special investment business”,
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(iv) in subsection (5)(a) by deleting “or special investment business”,
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(v) in subsection (6) by substituting “(excluding pension business or general annuity business)” for “(excluding pension business, general annuity business or special investment business)”, and
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(vi) by substituting the following for subsection (7)—
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“(7) For the purposes of this section, assets of the foreign life assurance fund and liabilities of the foreign life assurance business shall be disregarded in determining the investment reserve.”,
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(f) in section 723—
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(i) in subsection (1)—
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(I) by substituting the following for the definition of “special investment fund”:
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“ ‘special investment fund’ means a fund in respect of which the conditions specified in subsection (2) are satisfied as respects accounting periods ending on or before 31 December 2002, of the assurance company concerned;”,
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and
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(II) in the definition of “special investment policy” by substituting the following for paragraph (a):
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“(a) the conditions specified in subsection (3) are satisfied as respects accounting periods ending on or before 31 December 2002, of the assurance company concerned, and”,
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and
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(III) by deleting subsections (6) and (7),
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(g) in section 724 by substituting “Where, in an accounting period ending on or before 31 December 2002, an assurance company transfers” for “Where an assurance company transfers”,
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(h) in section 725—
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(i) in subsection (1) by substituting “at any particular time on or before 31 December 2002,” for “at any particular time”, and
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(ii) in subsection (2) by substituting “at any time on or before 31 December 2002,” for “at any time”,
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and
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(i) in section 839—
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(i) in subsection (1) by deleting paragraph (b),
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(ii) in subsection (2)(a) by substituting “paragraph (c) or (d)” for “paragraph (b), (c) or (d)”,
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(iii) in subsection (2)(a)(ii) by substituting “section 737(3)(a)(ii) or 838(2)(b)” for “section 723(3)(b), 737(3)(a)(ii) or 838(2)(b)”,
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(iv) in subsection (2)(b)(i) by substituting “paragraph (c) or (d)” for “paragraph (b), (c) or (d)”,
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(v) in subsection (2)(b)(ii) by substituting “paragraph (c) or (d)” for “paragraph (b), (c) or (d)”,
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(vi) in subsection (2)(b)(ii)(II) by substituting “section 737(3)(a)(ii) or 838(2)(b)” for “section 723(3)(b), 737(3)(a)(ii) or 838(2)(b)”, and
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(vii) in subsection (3) by deleting “723,”.
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(2) This section applies as respects accounting periods ending in 2003 and subsequent years.
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