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- Point in Time (08/04/2004)
- Original (As enacted)
Version Superseded: 19/07/2007
Point in time view as at 08/04/2004. This version of this provision has been superseded.
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(1)If one or more relevant amounts are brought into account for a period of account of a company and either—
(a)the aggregate of those amounts exceeds the loss which, after the making of any reduction under subsection (6) below but before any application of section 83(3) above in relation to that period, would have arisen to the company in that period in respect of its life assurance business, or
(b)no such loss would have so arisen,
the surplus for that period shall be applied in accordance with the following provisions of this section and section 83AB below.
(2)In this section—
“ relevant amount ” means so much of any amount which is added to the [F3 long-term insurance ] fund of a company as mentioned in subsection (3) of section 83 above as does not fall within any of the paragraphs of subsection (4) of that section;
“ surplus ”, in relation to a period of account of a company, means (subject to section 83AB(2) below)—
(a)if the aggregate of the relevant amounts brought into account for that period exceeds the amount of any loss which, after the making of any reduction under subsection (6) below but before any application of section 83(3) above in relation to that period, would have arisen to the company in that period in respect of its life assurance business, the amount of the excess; or
(b)if no such loss would have so arisen, the aggregate of the relevant amounts brought into account for that period.
F4(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6)Any loss arising to a company in respect of its life assurance business in a period of account subsequent to one for which there is a surplus shall be reduced (but not below nil) by so much of that surplus as cannot be applied—
F5(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b)under this subsection, in the reduction of a loss arising to the company in an earlier period of account; or
(c)under section 83AB below, in relation to a transfer of business from the company in that or any earlier period of account.
(7)Any reduction pursuant to subsection (6) above of a loss arising to a company in a period of account shall be made—
(a)before any application of section 83(3) above in relation to that period, F6...
F6(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8)A surplus in respect of an earlier period of account shall be applied under subsection (6) above before a surplus in respect of a later period of account.
(9)All such adjustments to the liability to tax of any person shall be made, whether by assessment or otherwise, as may be required to give effect to this section.
(10)In this section—
“ add ” has the same meaning as in section 83 above;
F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“ transfer of business ” has the same meaning as in section 83(3) above;
F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(11)A transfer of business falling within section 83(6)(c) above shall be treated for the purposes of this section as a transfer of business from the company which is the reinsured under the contract of reinsurance.]
Textual Amendments
F1Ss. 83AA, 83AB inserted (29.4.1996 with effect as mentioned in Sch. 31 paras. 9(1), 10(2) of the amending Act) by 1996 c. 8, s. 163, Sch. 31 para. 5
F2Words in s. 83AA(3)(4) and the sidenote substituted (1.12.2001) by S.I. 2001/3629, art. 60(1)(b)
F3Words in the definition of “relevant amount” in s. 83AA(2) substituted (1.12.2001) by S.I. 2001/3629, art. 60(1)(b)
F4Ss. 83AA(3)-(5) repealed (with effect in accordance with Sch. 33 para. 4(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 33 para. 4(1)(a), Sch. 43 Pt. 3(12)
F5S. 83AA(6)(a) repealed (with effect in accordance with Sch. 33 para. 4(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 33 para. 4(1)(b), Sch. 43 Pt. 3(12)
F6S. 83AA(7)(b) and preceding word repealed (with effect in accordance with Sch. 33 para. 4(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 33 para. 4(1)(c), Sch. 43 Pt. 3(12)
F7Words in s. 83AA(10) repealed (with effect in accordance with Sch. 33 para. 4(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 33 para. 4(1)(d), Sch. 43 Pt. 3(12)
Modifications etc. (not altering text)
C1S. 83AA modified (29.4.1996) by 1996 c. 8, s. 163, Sch. 31 para. 9(1)
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