# The Insurance Companies (Corporation Tax Acts) (Amendment) Order 2006, Note: Explanatory note


(This note is not part of the Order)
This Order amends Chapter 1 of Part 12 of the Income and Corporation Taxes Act 1988 (c. 1) in relation to the apportionment rules applying to companies carrying on life assurance business which attribute income and gains of such a company’s inherited estate to categories of the company’s business.
Article 1 provides for the citation, commencement and effect of the instrument. The effect of the Order is restricted in respect of periods of account ending before the instrument comes into force.
Article 2 corrects a grammatical error in section 431(2ZB)(d).
Article 3 amends section 432B of the Income and Corporation Taxes Act 1988 (apportionment of receipts brought into account) to allow an adjustment of amounts computed under section 83 of the Finance Act 1989 (c. 26) where, in relation to the fund in question, an election in accordance with Rule 9.10(c) of the Prudential Sourcebook (Insurers) has effect for the period account. New provisions provide for the calculation of the adjustment. Other amendments are made to section 432B which are consequent on the separate treatment of basic life assurance and general annuity business and other categories of life insurance business.
Article 4 amends paragraph 4(5) of Schedule 19AA of the Income and Corporation Taxes Act 1988 removing a definition which is unnecessary in consequence of amendments made by S.I. 2005/3465.
This Order does not impose any new costs on business.

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Source: https://www.legislation.gov.uk/uksi/2006/1358/note (the official version)
Page: https://openlegislation.uk/insurance-companies-corporation-tax-acts-amendment-order-2006/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.