§ Mr. Dorrell
On 30 December 1992 I announced changes to the new charge to tax on life assurance companies brought in by the Finance Act 1990. The charge arises on the deemed disposal of their holdings in authorised unit trusts and certain offshore funds.
For most companies the charge is due to come into effect for accounting periods beginning on 1 January 1992. We propose to defer the charge for one year so that it relates first to accounting periods beginning on or after 1 January 1993.
The existing measures can, however, produce a higher tax charge than was intended; and we propose to bring forward amending legislation in the 1993 Finance Bill to counter this effect. There will also be amendments to the transitional provisions.
The Inland Revenue press release of 30 December 1992 containing the text of my announcement, and further details of the proposals, has been placed in the House of Commons Library.