# The Overseas Life Assurance Fund (Amendment) Order 1994, Note: Explanatory note


(This note is not part of the Order)
This Order amends Schedule 19AA to the Income and Corporation Taxes Act 1988 (“the Schedule”), which has effect for determining the assets of a company which are the assets of its overseas life assurance fund.
Article 3 makes an amendment to paragraph 2 of the Schedule, which specifies the assets which make up the overseas life assurance fund. The article restricts the categories of assets acquired and disposed of during the same period of account which are to be treated as assets of the fund.
Article 4 amends paragraph 4 of the Schedule. Paragraph 4 refers back to paragraph 3 of the Schedule, which provides, in paragraph 3(1), that where, at the end of a period of account, the value of the assets mentioned in paragraph 2(1) is less than the amount mentioned in paragraph 4, assets designated in accordance with paragraph 5 shall become assets of the overseas life assurance fund; and, in paragraph 3(3), that where, at the end of a period of account, the value of the assets mentioned in paragraph 2(1) is greater than the amount mentioned in paragraph 4, assets designated in accordance with paragraph 5 shall cease to be assets of the overseas life assurance fund. Article 4(1) amends paragraph 4(1) of Schedule 19AA so that certain amounts are not taken into account in determining the amount mentioned in paragraph 4: those amounts are the value of any land in the United Kingdom which is solely linked to overseas life assurance business and the relevant fraction of the value of any land in the United Kingdom which is partly linked to overseas life assurance business. Article 4(2) contains a consequential drafting amendment. Article 4(3) adds additional sub-paragraphs to paragraph 4 of the Schedule, which provide a definition of “land”and for the manner in which the relevant fraction is to be ascertained.
Article 5 amends paragraph 5 of the Schedule, which contains provisions for any designation of assets required for the purposes of paragraph 3. Paragraph 5(5) lists various categories of assets; and any designation of assets is to be made in accordance with this list. Article 5, by amending paragraph 5(5), varies the order in which categories of assets are designated, or as the case may be cease to be designated, as part of the overseas life assurance fund.

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Source: https://www.legislation.gov.uk/uksi/1994/3278/note (the official version)
Page: https://openlegislation.uk/overseas-life-assurance-fund-amendment-order-1994/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.