HC Deb 28 March 1996 vol 274 cc1205-6

9.—(l) In the application of section 83AA or 83AB of the Finance Act 1989 in a case where one or more relevant amounts added to a company's long term business fund on or before 25th March 1996 are brought into account for a period of account beginning on or after 1st January 1996—

  1. (a) the amount of any loss which, before any application of section 83(3) of that Act in relation to that period, would have arisen to the company in that period shall be treated as reduced (but not below nil) by the aggregate of those relevant amounts; and
  2. (b) except as provided by paragraph (a) above, those relevant amounts shall be disregarded.

(2) In the application of sub—paragraph (1) above in relation to an overseas life insurance company, any reference to an amount added to a company's long term business fund shall be taken as a reference to any assets which became assets of the long term business fund of an overseas life insurance company used or held for the purposes of the company's United Kingdom branch or agency, having immediately previously been—

  1. (a) held by the company otherwise than as assets of that fund, or
  2. (b) used or held otherwise than for those purposes.

(3) If the relevant accounting period mentioned in subsection (3) of section 83AA of the Finance Act 1989 is a period beginning before 1st January 1996, only the appropriate portion of the eligible loss shall be reduced pursuant to that subsection; and for the purposes of this sub—paragraph–

  1. (a) "the eligible loss" means so much of the loss arising to the transferor company in the relevant accounting period as, on a just and reasonable apportionment of the loss for the purposes of that subsection, is referable to the business which is the subject of the particular transfer of business in question; and
  2. (b) "the appropriate portion" of the eligible loss is the amount which bears to the eligible loss the proportion which A bears to B where—

(4) Paragraph 10(2) below shall not prevent—

  1. (a) an amount of surplus for a period of account of a company beginning on or after 1st January 1996, or
  2. (b) an amount of surplus for any period of account of a company which, by virtue of the operation of this subparagraph, derives from an amount of surplus falling within paragraph (a) above,

from being treated by virtue of section 83AB of the Finance Act 1989 as an amount of surplus for the period of account of another company last preceding its earliest period of account ending on or after 1st January 1996 (whenever beginning) or from being applied accordingly under section 83AA(6) or 83AB of that Act.

(5) In this paragraph—

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