Paragraph 15

After section 755B of the Taxes Act 1988 there shall be inserted—

“ Application of Chapter where general insurance business of foreign company accounted for on non-annual basis.

755C

(1)

The Treasury may by regulations provide for the provisions of this Chapter to have effect with prescribed modifications in any case where a non-resident company—

(a)

carries on general insurance business; and

(b)

draws up accounts relating to that business using a method falling within subsection (2) of section 755B.

(2)

Regulations under subsection (1) above may—

(a)

make different provision for different cases;

(b)

make provision having effect in relation to accounting periods of non-resident companies ending not more than one year before the date on which the regulations are made; and

(c)

contain such supplementary, incidental, consequential and transitional provision as the Treasury may think fit.

(3)

In this section—

• “general insurance business” has the same meaning as in section 755B;

• “non-resident company” means a company resident outside the United Kingdom;

• “prescribed” means prescribed in regulations under this section.”