Schedule 9 - Insurance companies etc
Finance Bill
7:15 pm
Nicholas Winterton (Macclesfield, Conservative)
With this it will be convenient to discuss the following amendments: No. 105, in schedule 9, page 131, line 1, leave out from beginning to end of line 12.
No. 106, in schedule 9, page 131, line 5, at end insert—
‘(3A)Where the Treasury by order amend any of the provisions indicated in subsection (3)(a), (b) or (c), such that an amount which has not been recognised in regulatory surplus and without the regulations would not have been treated as attributable to basic life assurance and general annuity business, has been treated as fully attributable to basic life assurance and general annuity business, and treated for the purposes of section 89 of the Finance Act 1989 within the shareholders’ share of the relevant profits (Amount (“C”)) then on a subsequent transfer of shareholders’ excess assets, the company shall be entitled when computing the Case I profits, defined in section 89(7) of the Finance Act 1989, to deduct an amount equal to the amounts (“C”) that in any accounting period following the introduction of the order, have not been recognised in regulatory surplus, that have been treated as fully attributable to basic life assurance and general annuity business, and have been treated for the purposes of section 89 of the Finance Act 1989 within the shareholders’ share of the relevant profits, and for which no corresponding deduction has already been claimed.
(3B)Where the Treasury by order amend any of the provisions indicated in subsection 3(a) (b) or (c), such that an amount which has not been recognised in regulatory surplus and without the regulations would not have been treated as attributable to basic life assurance and general annuity business, has been treated as fully attributable to basic life assurance and general annuity business, and treated for the purposes of section 89 of the Finance Act 1989 within the policyholders’ share of the relevant profits (Amount (“D”)), then on a subsequent transfer of shareholders’ excess assets, the company shall be entitled when computing the Case I profits, defined in section 89(7) of the Finance Act 1989, to deduct an amount equal to the sum of amounts (“D”) multiplied by the lower rate of tax, and then divided by the mainstream rate of corporation tax, that have not been recognised in regulatory surplus, that have been treated as fully attributable to basic life assurance and general annuity business, and have been treated for the purposes of section 89 of the Finance Act 1989 within the shareholders’ share of the relevant profits for which no corresponding deduction has already been claimed.
(3C)For the purposes of subsections (3A) and (3B), “shareholders’ excess assets” means—
(a)the amount of assets shown in a non-participating fund of the company attributed to the interests of the shareholders of the company as a result of a reattribution exercise, less
(b)the amount of assets used to provide support to the with-profits fund of the same company.’.
I now call Chris Huhne.