Regulation 10 Amendment of the principal Regulations

Amend regulation 8 (elections under section 107(4) of the Finance Act 2000 or paragraph 4(2) of Schedule 24 to the Taxes Act) as follows.

For paragraph (1) substitute—

“(1)

An election by a general insurer for the purposes of section 107(4) or for the purposes of paragraph 4(2) of Schedule 24 to the Taxes Act^f1 may be made or withdrawn at any time up to whichever is the last of the following dates—

(a)

the first anniversary of the filing date for the company tax return of the company making the election for the period of account in respect of which the election is made;

(b)

if notice of enquiry is given into that return, 30 days after the enquiry is completed;

(c)

if, after such an enquiry, the Board amend the return under paragraph 34(2) of Schedule 18 to the Finance Act 1998, 30 days after the notice of the amendment is issued; and

(d)

if an appeal is brought against such an amendment, 30 days after the date on which the appeal is finally determined.

(1A)

Paragraph (1) applies to an underwriting member other than a body corporate with the substitution for paragraphs (a) to (c) of—

“(a)

the first anniversary of 31st January next following the end of the year of assessment in which falls the end of the period of account in respect of which the election is made;

(b)

if notice of enquiry is given into the underwriting member’s tax return for that year of assessment, 30 days after the enquiry is completed;

(c)

if after such an enquiry the Board amend the return under section 28A of the Taxes Management Act 1970^f2, 30 days after the amendment of the return;”.”

In paragraph (2) for “paragraph (1)” substitute “paragraph (1)(a)”.

At the end add—

“(4)

An election under section 107(4) by a controlled foreign company may be communicated, on its behalf, by the person or persons resident in the United Kingdom by whom it is controlled to the Board.

(5)

An election under section 107(4) shall be made in writing and shall specify—

(a)

the period of account in respect of which the election is made;

(b)

the earlier period or periods of account to which the technical provisions in question relate;

(c)

the amount of technical provisions being disclaimed in respect of each such period; and

(d)

the currency in which the technical provisions being disclaimed are expressed.”.