Clause 155 - Overseas life insurance companies
Finance Bill
5:00 pm
Ms Dawn Primarolo (Paymaster General, HM Treasury; Bristol South, Labour)
There has been special legislation for overseas life insurance companies since 1915. There was a major reform of the legislation in 1993. Members of the Committee will not be surprised to hear that that legislation was long and complicated. Soon after its introduction, whether by coincidence or design, the number of overseas life insurance companies carrying on business in the United Kingdom declined rapidly. Now, the number of pages of legislation dealing with overseas life insurance companies is many times the number of the companies to which it applies. In the circumstances, I thought it sensible that the new rules for the non-resident companies in clauses 147 to 154 should be made to apply to the overseas life insurance companies, with all the necessary modification done in secondary legislation.
I entirely understand the point made by the hon. Members for Eddisbury and for Torridge and West Devon. On 16 April, the Inland Revenue published a draft of the regulations that will be made under the clause when it passes into law. The draft regulations are currently the subject of consultation with interested parties. I understand that there are currently six companies that will be affected. Once the consultation has been completed, although the regulations are subject to negative procedure, they will be considered in a Committee on Delegated Legislation. If the hon. Members for Torridge and West Devon and for Eddisbury have not received a copy of the draft regulations but would like one for bed-time reading, or if any member of the Committee would like a copy, I will ensure that copies are sent.
Given the difficulties that have existed in this area, I thought it best to proceed on the basis of consultation and agreement with the interested parties, of which there is a small number compared with other areas of taxation. At present, the regulations are being discussed with them. I would be happy to let members of the Committee know those organisations' views on the regulations.