The Overseas Life Insurance Companies Regulations 2006

Modifications of the Income and Corporation Taxes Act

6.—(1) Modify section 431(2)(1) (interpretative provisions relating to insurance companies) as follows.

(2) In the definition of “insurance company”—

(a)in paragraph (a), after “contracts of insurance” insert “(a “UK-authorised firm”)”, and

(b)in paragraph (b)—

(i)after “Schedule 3 to that Act” insert “(an “EEA firm”)”,

(ii)after “Schedule 4 to that Act” insert “(a “Treaty firm”)”, and

(iii)in sub-paragraph (ii) for “branch or agency” substitute “permanent establishment”.

(3) In the definition of “overseas life insurance company” for “branch or agency” substitute “permanent establishment”.

(4) Substitute the following definitions in the appropriate places—

““liabilities”, where the company concerned is an overseas life insurance company, does not include liabilities that have been reinsured, and (subject to that) means—

““value”, in relation to assets and where the company concerned is an overseas life insurance company, means—

““insurance business transfer scheme” means a scheme falling within section 105 of the Financial Services and Markets Act 2000 and includes a reference to—

(5) Insert the following definitions in the appropriate places—

““free assets amount”, in relation to an overseas life insurance company, means the excess of the value of the relevant assets over the aggregate of the relevant liabilities and the amount of the shareholders’ excess assets, and for the purposes of this definition—

““IAD accounts” means the accounts drawn up in accordance with the Council Directive of 19th December 1991 on the annual accounts and consolidated accounts of insurance undertakings (No.91/674/EEC);”;

““long-term insurance fund”, in the case of an overseas life insurance company where the company is an EEA firm or a Treaty firm, means the technical account for life assurance business of the company included in the IAD accounts, and references to assets of the long-term insurance fund shall be read as references to assets from which any income or gain is or would be included in the technical account;”;

““periodical return” means, in relation to an overseas life insurance company, where the company is an EEA firm or a Treaty firm, the IAD accounts;”;

““qualifying overseas transfer” means so much of any transfer of the whole or any part of the business of an overseas life insurance company carried on through a permanent establishment in the United Kingdom as takes place in accordance with any authorisation granted outside the United Kingdom for the purposes of Article 14 of the Council Directive of 5th November 2002 concerning life assurance (No.2002/83/EC);”.