Taxation of Reinsurance Business

The Commissioners of Inland Revenue, in exercise of the powers conferred on them by sections 431C(1), 439A and 442A(2) to (6) of the Income and Corporation Taxes Act 1988, and paragraph 58 of Schedule 8 to the Finance Act 1995, hereby make the following Regulations:Citation, commencement and effect
These Regulations may be cited as the Insurance Companies (Taxation of Reinsurance Business) Regulations 1995, shall come into force on 28th July 1995, and shall have effect with respect to accounting periods beginning on or after 1st January 1995.    In these Regulations unless the context otherwise requires— "accounting period" means an accounting period of a cedant company during which a reinsurance arrangement is in force;

 

The"basic life assurance and general annuity business" has the meaning given by section 431F of the Taxes Act;"the Board" means the Commissioners of Inland Revenue;"deposit-back arrangement" means an arrangement whereby an amount is deposited with the cedant company by the reinsurer;"EEA Agreement" means the Agreement on the European Economic Area signed at Oporto on 2nd May 1992 as adjusted by the Protocol signed at Brussels on 17th March 1991;"EEA State" means a State, other than the United Kingdom, which is a Contracting Party to the EEA Agreement;"inspector" includes any officer of the Board;

 

The"internal linked fund" means an account to which an insurance company appropriates certain linked assets and which may be subdivided into units the value of which is determined by the company by reference to the value of those assets;"investment return" means the investment return to be treated as accruing to a cedant company in respect of a policy pursuant to subsection (1) of section 442A in an accounting period;"linked assets" has the meaning given by section 432ZA(1) of the Taxes Act, 

And "non-linked assets" means assets other than linked assets;"linked business" means business which comprises the effecting and carrying out by an insurance company of policies where benefits provided for under each policy are to be determined by reference to the value of linked assets;"morbidity risk" in relation to a policy means the risk that the person whose life is insured by the policy will suffer any sickness, accident or infirmity;