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The Double Taxation Relief (Surrender of Relievable Tax Within a Group) (Amendment) Regulations 2003

S.I. 2003/1829 · Made 16 July 2003

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

INCOME TAX

Made 16th July 2003

Laid before the House of Commons 17th July 2003

Coming into force 7th August 2003

The Commissioners of Inland Revenue, in exercise of the powers conferred upon them by section 806H of the Income and Corporation Taxes Act 1988f1, hereby make the following Regulations:

Annotations to the whole text

Footnotes

f1

1988 c. 1. Sections 806A to 806J were inserted by paragraph 21 of Schedule 30 to the Finance Act 2000 (c. 17).

Contents

  1. 1Citation, commencement and effect
  2. 2Amendments to regulation 4 of the Double Taxation Relief (Surrender of Relievable Tax Within a Group) Regulations 2001
  3. Signature
  4. Explanatory note

1Citation, commencement and effect

(1)

These Regulations may be cited as the Double Taxation Relief (Surrender of Relievable Tax Within a Group) (Amendment) Regulations 2003 and shall come into force on 7th August 2003.

(2)

These Regulations have effect in relation to distributions made on or after 9th April 2003 in accounting periods ending on or after 7th August 2003.

2Amendments to regulation 4 of the Double Taxation Relief (Surrender of Relievable Tax Within a Group) Regulations 2001

(1)

Regulation 4 of the Double Taxation Relief (Surrender of Relievable Tax Within a Group) Regulations 2001 (amount of EUFT available for surrender)f1 is amended as follows.

(2)

In paragraph (4)—

(a)

after “attributable” insert “by virtue of section 797(1)”, and

(b)

after “referable” insert “by virtue of section 432Af2”.

(3)

In paragraph (5)—

(a)

omit the definition of “attributable”,

(b)

in the definition of “BLAGAB” after “business” insert “within the meaning given by section 431Ff3”, and

(c)

for the definitions of “the policy holder’s share of the amount of EUFT attributable to BLAGAB” and “the policy holders' share of the corporation tax attributable to any single dividend referable to the claimant company’s BLAGAB” substitute—

  • ““the policy holders' share of the amount of EUFT attributable to BLAGAB” means the relevant fraction of—

    1. (a)

      where all of the company’s long-term business within the meaning given by section 431(2)f4 is BLAGAB, the whole of the amount of EUFT;

    2. (b)

      in any other case, so much of the amount of EUFT as is attributable to BLAGAB by virtue of section 804B(3) or (4)f5;

  • “the policy holders' share of the corporation tax attributable to any single dividend referable to the claimant company’s BLAGAB” means the relevant fraction of that tax;

  • “the relevant fraction” means the fraction arrived at by dividing—

    1. (a)

      the policy holders' share of the company’s relevant profits for the relevant accounting period, by

    2. (b)

      the company’s BLAGAB profits for that period,

    and, for the purposes of this definition, “the policy holders' share of the company’s relevant profits” shall be construed in accordance with sections 88(3) and 89 of the Finance Act 1989f6 and “the company’s BLAGAB profits” shall be construed in accordance with section 89(1B) of that Act;”.

Signature

Ann Chant

Dave Hartnett

Two of the Commissioners of Inland Revenue

16th July 2003

Explanatory note

(This note is not part of the Regulations)

These Regulations amend the Double Taxation Relief (Surrender of Relievable Tax Within a Group) Regulations 2001 (S.I. 2001/1163) (“the principal Regulations”). The principal Regulations provide for the surrender of eligible unrelieved foreign tax (“EUFT”) by one company in a group to another. The main amendments in consequence of amendments made to the legislation governing the taxation of insurance companies by Schedule 33 to the Finance Act 2003 (c. 14).

Regulation 1 provides for citation, commencement and effect.

Regulation 2 amends regulation 4 of the principal Regulations (amount of EUFT available for surrender).