Paragraph 4

United Kingdom

F1(1)

The amount referred to in paragraph 3 above shall be determined by the formula—

A + B - C - D

where—

A is the liabilities of the company’s overseas life assurance business at the end of the period of account,

F2B is the aggregate of—

(a) the appropriate part of the F3free assets amount at that time, and

(b) the appropriate part of any liabilities of the company’s F4long-term insurance fund at that time which represent a money debt,

C is the value, at that time, of any land in the United Kingdom which is an asset linked solely to the company’s overseas life assurance business, and

D is the relevant fraction of the value, at that time, of any land in the United Kingdom which is an asset linked both to the company’s overseas life assurance business and to some other category of business.

F5This is subject to sub-paragraph (1A) below.

F6(1A)

If for the purposes of sub-paragraph (1) above A is below nil then the amount referred to in paragraph 3 above shall be nil.

F7(2)

In sub-paragraph (1) above, in B, the “appropriate part" of the company’s F8free assets amount at the end of the period of account, or of any liabilities of its long-term insurance fund at that time which represent a money debt, is—

(a)

where none (or none but an insignificant proportion) of the liabilities of the company’s F9long-term business at that time are with-profits liabilities, the part which bears to the whole the proportion A/B; and

(b)

in any other case, the part which bears to the whole the proportion C/D.

For this purpose—
A is the amount of the liabilities of the company’s overseas life assurance business at the end of the period of account F10(but taking that amount to be nil if it would otherwise be below nil),
B is the whole amount of the liabilities of the company’s long-term business at that time,
C is the amount of the with-profits liabilities of the company’s overseas life assurance business at that time, and
D is the whole amount of the with-profits liabilities of the company’s long-term business at that time.
F11This is subject to sub-paragraph (2A) below.

F12(2A)

If for the purposes of sub-paragraph (2) above B is nil then, in sub-paragraph (1) above, in B, the appropriate part” of the company's free assets amount, at the end of the period of account, or of any liabilities of its long-term insurance fund at that time which represents a money debt, means the part which bears to the whole such proportion as is just and reasonable.

F13(3)

In this Schedule “land” includes buildings and other structures, land covered with water, and any estate, interest, easement, servitude, right or licence in or over land.

(4)

In sub-paragraph (1) above, in D, “the relevant fraction” is the fraction of which—

(a)

the numerator is the value, at the end of the period of account, of such of the liabilities of the company’s overseas life assurance business as were liabilities in respect of benefits to be determined by reference to the value of the asset; and

(b)

the denominator is the value, at that time, of all the liabilities of the company’s long-term business which were liabilities in respect of benefits to be so determined.

F14(5)

In this paragraph—

F15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“money debt" has the same meaning as in Chapter II of Part IV of the Finance Act 1996 M1.

Annotations

Textual amendments

F1: Sch. 19AA para. 4(1) substituted (10.1.1995 with effect in accordance with art. 1 of the amending S.I.) by The Overseas Life Assurance Fund (Amendment) Order 1994 (S.I. 1994/3278), art. 4(1)
F2: Sch. 19AA para. 4(1): definition of "B" substituted (1.9.2000 with effect in accordance with art. 1 of the amending S.I.) by The Overseas Life Assurance Fund (Amendment) Order 2000 (S.I. 2000/2188), art. 3(2)
F3: Words in Sch. 19AA para. 4(1) substituted (6.1.2006 with effect in accordance with art. 1 of the amending S.I.) by The Insurance Companies (Corporation Tax Acts) (Amendment) Order 2005 (S.I. 2005/3465), art. 7(2)
F4: Words in Sch. 19AA para 4(1)(2)(5) substituted (1.12.2001 in accordance with art. 1(2)(a) of the amending S.I.) by The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629), art. 52(1)(k)(iii)
F5: Words in Sch. 19AA para. 4(1) inserted (17.4.2007 with effect in accordance with art. 1(2) of the amending S.I.) by The Insurance Companies (Corporation Tax Acts) (Amendment) Order 2007 (S.I. 2007/1031), arts. 1(1), 9(2)
F6: Sch. 19AA para. 4(1A) inserted (17.4.2007 with effect in accordance with art. 1(2) of the amending S.I.) by The Insurance Companies (Corporation Tax Acts) (Amendment) Order 2007 (S.I. 2007/1031), arts. 1(1), 9(3)
F7: Sch. 19AA para. 4(2) substituted (1.9.2000 with effect in accordance with art. 1 of the amending S.I.) by The Overseas Life Assurance Fund (Amendment) Order 2000 (S.I. 2000/2188), art. 3(3)
F8: Words in Sch. 19AA para. 4(2) substituted (6.1.2006 with effect in accordance with art. 1 of the amending S.I.) by The Insurance Companies (Corporation Tax Acts) (Amendment) Order 2005 (S.I. 2005/3465), art. 7(3)
F9: Words in Sch. 19AA para 4(2)(a)(b)(4)(b)(5) substituted (1.12.2001 in accordance with art. 1(2)(a) of the amending S.I.) by The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629), art. 52(2)(m)(ii)
F10: Words in Sch. 19AA para. 4(2) inserted (17.4.2007 with effect in accordance with art. 1(2) of the amending S.I.) by The Insurance Companies (Corporation Tax Acts) (Amendment) Order 2007 (S.I. 2007/1031), arts. 1(1), 9(4)(a)
F11: Words in Sch. 19AA para. 4(2) inserted (17.4.2007 with effect in accordance with art. 1(2) of the amending S.I.) by The Insurance Companies (Corporation Tax Acts) (Amendment) Order 2007 (S.I. 2007/1031), arts. 1(1), 9(4)(b)
F12: Sch. 19AA para. 4(2A) inserted (17.4.2007 with effect in accordance with art. 1(2) of the amending S.I.) by The Insurance Companies (Corporation Tax Acts) (Amendment) Order 2007 (S.I. 2007/1031), arts. 1(1), 9(5)
F13: Sch. 19AA para. 4(3)(4) inserted (10.1.1995 with effect in accordance with art. 1 of the amending S.I.) by The Overseas Life Assurance Fund (Amendment) Order 1994 (S.I. 1994/3278), art. 4(3)
F14: Sch. 19AA para. 4(5) inserted (1.9.2000 with effect in accordance with art. 1 of the amending S.I.) by The Overseas Life Assurance Fund (Amendment) Order 2000 (S.I. 2000/2188), art. 3(4)
F15: Sch. 19AA para. 4(5): definition of "free assets amount" omitted (9.6.2006 with effect in accordance with art. 1(2)(3) of the repealing S.I.) by virtue of The Insurance Companies (Corporation Tax Acts) (Amendment) Order 2006 (S.I. 2006/1358), arts. 1(1), 4

Marginal citations

M1: 1996 c. 8.

Notes on Schedule 19AA

Textual amendments

F1: Sch. 19AA repealed (with effect in accordance with s. 38(2) of the repealing Act) by Finance Act 2007 (c. 11), Sch. 7 para. 55, Sch. 27 Pt. 2(7), Note (with Sch. 7 Pt. 2)
F2: Sch. 19AA inserted (for accounting periods beginning on or after 1 January 1990) by Finance Act 1990 (c. 29), Sch.7 paras. 6, 10