§ (1) Where an assurance company not having its head office in the United Kingdom carries on life assurance business through any branch or agency in the United Kingdom, any income of the company from the investments of its life assurance fund (excluding the annuity fund, if any), wherever received, shall, to the extent provided in this Section, be deemed to be profits comprised in Schedule D of the Income Tax Act, 1853, and shall be charged under the rules of the third case in Section one hundred of the Income Tax Act, 1842.
§ (2) Such portion only of the income from the investments of the life assurance fund shall be charged under this Section as bears the same proportion to the total income from those investments as the amount of premiums received in that year from policy holders resident in the United Kingdom and from policy holders resident abroad whose proposals were made to the company at or through its office or agency in the United Kingdom bears to the total amount of the premiums received by the company.748
§ (3) That relief conferred by this Act in respect of expenses of management shall, in the case of a company charged to Income Tax under this Section, be calculated by reference to a like proportion of the total expenses of management of the company for the year estimated in accordance with the provisions of this Act.
§ (4) Every assessment under this Section shall be made by the Special Commissioners as though the company under the provisions of the Income Tax Acts had required the proceedings relating to the assessment to be had and taken before those Commissioners.
§ (5) Where a company has already been charged to Income Tax, by deduction or otherwise, in respect of its life insurance business, to an amount equal to or exceeding the charge under this Section, no further charge shall be made under this Section, and where a company has already been so charged, but to a less amount, the charge under this Section shall be proportionately reduced.
Amendment made: At end of Subsection (2) insert the words,
Provided that in the case of an assurance company having its head office in any British possession the Commissioners of Inland Revenue may, by regulation, substitute some basis other than that prescribed by this Section for the purpose of ascertaining the portion of the income from investments to be charged under this Section as being income derived from business carried on in the United Kingdom."—[Mr. Montagu.]