# The Child Trust Funds (Insurance Companies) Regulations 2004 S.I. 2004/2680 · made 14 October 2004 These Regulations provide for the exemption from corporation tax of income and gains that arise to an insurance company providing child trust funds, so far as they relate to the company’s child trust fund business. They also provide for the profit from operating child trust fund business to be taxed in the same way as profits from the company’s Individual Savings Account business, and for losses arising one category to be set off against profits from the other. Made under: Income and Corporation Taxes Act 1988 (Section 333B); Child Trust Funds Act 2004 (Section 14) PDFs: Printed copy https://openlegislation.uk/child-trust-funds-insurance-companies-regulations-2004/pdf/uksi_20042680_en.pdf; Explanatory Memorandum https://openlegislation.uk/child-trust-funds-insurance-companies-regulations-2004/pdf/uksiem_20042680_en.pdf ## Introductory text CHILD TRUST FUNDS Made 14th October 2004 Laid before the House of Commons 14th October 2004 Coming into force In accordance with regulation 1 The Treasury, in exercise of the powers conferred upon them by section 333B of the Income and Corporation Taxes Act 1988 as extended by section 14(1) of the Child Trust Funds Act 2004, hereby make the following Regulations: ## 1 Citation and commencement These Regulations may be cited as the Child Trust Funds (Insurance Companies) Regulations 2004 and shall come into force on the day appointed under section 27 of the Child Trust Funds Act 2004, for the purposes of sections 8 and 9 of that Act. ## 2 Interpretation In these Regulations— “child trust fund business” has the meaning given by regulation 3; “individual savings account business” has the meaning given in the Insurance Companies Regulations; “the Insurance Companies Regulations” means the Individual Savings Account (Insurance Companies) Regulations 1998; “the principal Regulations” means the Child Trust Funds Regulations 2004; “the Taxes Act” means the Income and Corporation Taxes Act 1988. ## 3 Child trust fund business For the purposes of these Regulations “child trust fund business”, in relation to an insurance company, means so much of that company’s life assurance business as is referable to any policy of life insurance, or to the reinsurance of liabilities under any such policy, where the policy is, on the date on which the insurance is made, a qualifying investment for an account within the meaning of regulation 12 of the principal Regulations. ## 4 Modifications of the Taxes Act Regulations 5 to 17 specify modifications of provisions of the Taxes Act so far as concerns the child trust fund business (and, in the case of regulations 11(b) and (c), 13 and 14, the individual savings account business) of insurance companies. ## 5 Modifications of the Taxes Act In section 431(2) insert at the appropriate place the following definition— ““child trust fund business” has the meaning given by regulation 3 of the Child Trust Funds (Insurance Companies) Regulations 2004;”. ## 6 Modifications of the Taxes Act In both of sections 431C(1) and 431D(1) after “pension business” insert “, child trust fund business”. ## 7 Modifications of the Taxes Act In section 431F after “pension business,” insert “child trust fund business,”. ## 8 Modifications of the Taxes Act In section 432A(2) (as modified by the Insurance Companies Regulations) after paragraph (aa) insert— “(ab) child trust fund business;”. ## 9 Modifications of the Taxes Act In section 432AA(4) (as modified by the Insurance Companies Regulations) after paragraph (aa) insert— “(ab) child trust fund business;”. ## 10 Modifications of the Taxes Act In both of sections 432C(1) and 432D(1) after “pension business,” insert “child trust fund business,”. ## 11 Modifications of the Taxes Act In section 436— (a) after the words “pension business”, in each place where they occur, insert “or child trust fund business”; (b) in subsection (1)(a) for “that business” substitute “the business of each such category”. (c) after subsection (3)(c) insert— “(ca) there may be set off (so far as it has not been set off under paragraph (c)), against the profits of child trust fund business any loss, to be computed on the same basis as the profits, which has arisen from individual savings account business, in the same or any previous accounting period; (cb) there may be set off (so far as it has not been set off under paragraph (c)), against the profits of individual savings account business any loss, to be computed on the same basis as the profits, which has arisen from child trust fund business, in the same or any previous accounting period;”. ## 12 Modifications of the Taxes Act In section 438(1) add at the end “ or child trust fund business”. ## 13 Modifications of the Taxes Act In section 440(4)(a) add at the end “, individual savings account business or child trust fund business, or assets linked to any of those categories but not to any other category of business”. ## 14 Modifications of the Taxes Act In section 440A(2)(a)(i) after “pension business” insert “, individual savings account business or child trust fund business or any of those categories of business”. ## 15 Modifications of the Taxes Act In section 466(2) insert at the appropriate place the following definition— ““child trust fund business” shall be construed in accordance with section 431(2);”. ## 16 Modifications of the Taxes Act In section 755A (as modified by the Insurance Companies Regulations) after paragraph (aa) in each of subsections (4) and (13) insert— “(ab) child trust fund business,”. ## 17 Modifications of the Taxes Act In paragraph 5(5) of Schedule 19AA after “pension business,” insert “child trust fund business,”. ## 18 Modification of the Taxation of Chargeable Gains Act 1992 Regulation 19 specifies a modification of section 212 of the Taxation of Chargeable Gains Act 1992 so far as concerns child trust fund business of insurance companies. ## 19 Modification of the Taxation of Chargeable Gains Act 1992 In section 212(2) after “pension business” insert “, child trust fund business”. ## 20 Modification of the Capital Allowances Act 2001 Regulation 21 specifies a modification of section 256 of the Capital Allowances Act 2001 so far as concerns child trust fund business of insurance companies. ## 21 Modification of the Capital Allowances Act 2001 In section 256(3)(a) after “pension business” insert “, child trust fund business”. ## 22 Amendments to the Insurance Companies Regulations Regulations 13(b), 15 and 16 of the Insurance Companies Regulations (which are superseded by regulations 11(b), 13 and 14 of these Regulations) shall cease to have effect. ## Signature Derek Twigg John Heppell Two of the Lords Commissioners of Her Majesty’s Treasury 14th October 2004 ## Explanatory note (This note is not part of the Regulations) These Regulations provide for the exemption from corporation tax of income and gains that arise to an insurance company providing child trust funds, so far as they relate to the company’s child trust fund business. They also provide for the profit from operating child trust fund business to be taxed in the same way as profits from the company’s Individual Savings Account business, and for losses arising one category to be set off against profits from the other. Regulation 1 provides for citation and commencement and regulation 2 for interpretation. Regulations 3 to 22 make technical modifications to tax provisions, to achieve the above effect. A full Regulatory Impact Assessment was prepared and issued on the introduction to Parliament of the Child Trust Funds Bill (passed as the 2004 Act) in November 2003. --- Source: https://www.legislation.gov.uk/uksi/2004/2680 (the official version) Page: https://openlegislation.uk/child-trust-funds-insurance-companies-regulations-2004 Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.