The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001

The Finance Act 2000 (c. 17)

Introduction

105.  Amend the Finance Act 2000 in accordance with Articles 106 and 107.

General insurance reserves

106.—(1) Amend section 107(7) (general insurance reserves) as follows.

(2) For the definition of “general business” substitute—

““general business” means business which consists of the effecting or carrying out of contracts that fall within Part I of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;”.

(3) In the definition of “general insurer” for paragraphs (a) and (b) substitute—

“(a)a person (other than a friendly society) who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts that fall within Part I of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;

(b)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act which has permission under paragraph 15 of Schedule 3 to that Act (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to effect or carry out such contracts;

(ba)a firm which has permission under paragraph 4 of Schedule 4 to that Act (as a result of qualifying for authorisation under paragraph 2 of that Schedule) to effect or carry out such contracts;”.

Employee share ownership plans

107.  In paragraph 39(3) of Schedule 8 (partnership share money held for employees)—

(a)for sub-paragraph (a) substitute—

“(a) a person falling within section 840A(1)(b) of the Taxes Act 1988,”;

(b)for sub-paragraph (c) substitute—

“(c) a firm falling within section 840A(1)(c) of that Act,”.