SCHEDULES

SCHEDULE 3Insurance companies and friendly societies

Section 76 of the Taxes Act 1988

1

1

Section 76 of the Taxes Act 1988 (expenses of management: insurance companies) shall be amended as follows.

2

In subsection (2B) (relevant income from life assurance business to be sum of items in paragraphs (a) and (b)) for paragraph (b) (relevant franked investment income) there shall be substituted—

b

the franked investment income of, and foreign income dividends arising to, the company which are referable to its basic life assurance and general annuity business.

3

In subsection (8) (interpretation) the definition of “relevant franked investment income” shall cease to have effect.

4

This paragraph has effect in relation to distributions made on or after 2nd July 1997.