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Amendment of Part 26 of Principal Act (life assurance companies)
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17. Part 26 of the Principal Act is amended—
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(a) in section 710(1)—
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(i) in paragraph (b) by substituting “;” for “.”, and
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(ii) by inserting the following after paragraph (b):
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“(c) for the purposes of Schedule 24, any foreign tax arising in respect of the profits excluded in making the computation under paragraph (a) shall be treated as solely attributable to those profits so excluded and that foreign tax—
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(i) shall not be allowed as a credit or deduction against corporation tax arising on any other profits of the assurance company,
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(ii) shall not be a foreign tax by which income is reduced in accordance with paragraph 7(3)(c) of that Schedule, and
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(iii) shall not otherwise be deducted from any other profits of the assurance company.”,
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(b) in section 730A(5)—
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(i) in paragraph (a) by deleting “and”,
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(ii) in paragraph (b) by substituting “annuitants, and” for “annuitants.”, and
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(iii) by inserting the following after paragraph (b):
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“(c) for the purposes of Schedule 24, any foreign tax arising in respect of the profits excluded in making the computation under paragraph (a) shall be treated as solely attributable to those profits so excluded and that foreign tax—
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(i) shall not be allowed as a credit or deduction against corporation tax arising on any other profits of the assurance company,
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(ii) shall not be a foreign tax by which income is reduced in accordance with paragraph 7(3)(c) of that Schedule, and
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(iii) shall not otherwise be deducted from any other profits of the assurance company.”,
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and
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(c) in section 730C(2) by substituting the following for paragraph (a):
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“(a) by way of security for a debt, or the discharge of a debt secured by the rights concerned, where the debt is a debt due to—
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(i) a financial institution, or
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(ii) a qualifying company within the meaning of section 110, where the debt was originated by a financial institution and the life policy was assigned, in whole or in part, by way of security for that debt, to that financial institution,”.
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