The Life Assurance (Apportionment of Receipts of Participating Funds) (Applicable Percentage) (Amendment) Order 1995

Made: 2nd May 1995

Laid before the House of Commons: 3rd May 1995

Coming into force: 24th May 1995

The Treasury, in exercise of the powers conferred on them by section 432E(4) of the Income and Corporation Taxes Act 1988[^f00001], hereby make the following Order:

1

This Order may be cited as the Life Assurance (Apportionment of Receipts of Participating Funds) (Applicable Percentage) (Amendment) Order 1995 and shall come into force on 24th May 1995.

2

In the Life Assurance (Apportionment of Receipts of Participating Funds) (Applicable Percentage) Order 1990[^f00002], in article 5—

• (a) for the words “section 83(1) of the Finance Act 1989” there shall be substituted the words “section 83(2) of the Finance Act 1989[^f00003]”,

• (b) for the words “assets linked solely to a particular category of business” there shall be substituted the words “linked assets”, and

• (c) for the words “assets of the relevant business linked solely to a particular category of business” there shall be substituted the words “assets of the relevant business which are linked assets”.

Signed

Tim Wood — Derek Conway — Two of the Lords Commissioners of Her Majesty’s Treasury — 2nd May 1995

Explanatory note

(This note is not part of the Order)

This Order amends article 5 of the Life Assurance (Apportionment of Receipts of Participating Funds) (Applicable Percentage) Order 1990 (S.I. 1990/1541). In addition to amending a statutory reference following legislative changes made by the Finance Act 1995, the Order provides for the calculation of the net investment yield specified in article 5 to be made by reference to “linked assets” within the meaning of section 432ZA of the Income and Corporation Taxes Act 1988 (inserted by paragraph 11(2) of Schedule 8 to the Finance Act 1995) and not by reference to assets linked solely to a particular category of business.

Footnotes

[^f00001]: 1988 c. 1; section 432E was inserted by paragraph 4 of Schedule 6 to the Finance Act 1990 (c. 29) and amended by paragraphs 12(1)(a), 16(3) and 17(2) of Schedule 8 to the Finance Act 1995 (c. 4).

[^f00002]: S.I. 1990/1541, amended by S.I. 1990/2546.

[^f00003]: 1989 c. 26; section 83 was substituted by paragraph 16(1) of Schedule 8 to the Finance Act 1995.