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.