Paragraph 4

Paragraph 6 (interpretation) shall be amended in accordance with the following provisions of this paragraph.

In sub-paragraph (1), for the definition of “provisional fraction” there shall be substituted—

““provisional fraction” shall be construed in accordance with paragraphs 1(4) and 2 above;”.

Sub-paragraph (3) (which makes transitional provision for cases where an insurance company has not made a return under section 11 of the M1Taxes Management Act 1970 as amended by section 82 of the M2Finance (No.2) Act 1987) shall cease to have effect.

After that sub-paragraph there shall be added—

“(4)

Sub-paragraph (5) below applies in any case where an insurance company—

(a)

which has delivered a return under section 11 of the Management Act for an accounting period ending before the self-assessment appointed day, but

(b)

which has not delivered its first return under that section for an accounting period ending on or after that day,

makes the first claim for a provisional repayment for a particular accounting period ending on or after that day.

(5)

Where this sub-paragraph applies—

(a)

the provisional fraction for the accounting period to which the claim mentioned in sub-paragraph (4) above relates shall be determined in accordance with paragraph 1(3), (4), and (6) and sub-paragraph (3) above, as they have effect in relation to accounting periods ending before that day; and

(b)

paragraph 2 above, as originally enacted, shall have effect in relation to that accounting period as it has effect in relation to accounting periods ending before that day.

(6)

In this paragraph “the self-assessment appointed day” means the day appointed under section 199 of the M3Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).”