Statutory Instrument 1992 No. 2744

The Income Tax (Insurance Companies) (Expenses of Management) Regulations 1992

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© Crown Copyright 1992

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1992 No. 2744

INCOME TAX

The Income Tax (Insurance Companies) (Expenses of Management) Regulations 1992

The Treasury, in exercise of the powers conferred on them by section 76(7A) and (8) of the Income and Corporation Taxes Act 1988^[1], hereby make the following Regulations:

Citation, commencement and effect
    1.    These Regulations may be cited as the Income Tax (Insurance Companies) (Expenses of Management) Regulations 1992 and shall come into force on 24th November 1992, but shall have effect with respect to sums paid before, as well as after, their coming into force.

Interpretation
    2.    In these Regulations unless the context otherwise requires—

" LAUTRO" means the Life Assurance and Unit Trust Regulatory Organisation Limited;

" the Lautro (Compensation Schemes) Rules 1991" means the rules so entitled which were made by the Board of directors of LAUTRO on 26th November 1991;

" the Lautro Indemnity Scheme" means the scheme established by rules 8.2 and 8.3 in Part VIII of the Lautro Rules 1988 as amended by the Lautro (Compensation Schemes) Rules 1991;

" the Lautro Rules 1988" means the rules so entitled which were made by the Board of directors of LAUTRO on 26th April 1988.

Sums treated as expenses of management
    3.    Any sums paid by a company to which section 76 of the Income and Corporation Taxes Act 1988^[2] applies under a levy imposed under the Lautro Indemnity Scheme established under the rules of LAUTRO shall be treated for the purposes of that section as part of the company's expenses of management.

Irvine Patnick

Tim Wood

Two of the Lords Commissioners of Her Majesty's Treasury

2nd November 1992

These Regulations, which come into force on 24th November 1992, are made under section 76(7A) and (8) of the Income and Corporation Taxes Act 1988 (" the Act"). Section 76(7) of the Act treats sums paid by insurance companies under certain levies as expenses of management of those companies, so that the sums fall to be deducted in computing a company's profits for corporation tax purposes under section 75 of the Act. Section 76(7A) enables the Treasury to provide by regulations for sums paid by insurance companies under other levies to be treated as expenses of management. These Regulations provide that sums paid by insurance companies under levies imposed under an investor protection scheme established under the rules of the Life Assurance and Unit Trust Regulatory Organisation Limited (" LAUTRO"), a recognised self-regulating organisation pursuant to section 10 of the Financial Services Act 1986 (c. 60), shall be treated as expenses of management.

Regulation 1 provides for citation, commencement and effect, and regulation 2 contains definitions.

Regulation 3 provides that sums paid by insurance companies under levies imposed under the Lautro Indemnity Scheme, an investor protection scheme established under the rules of LAUTRO, shall be treated as expenses of management.

The Lautro Rules 1988 and the Lautro (Compensation Schemes) Rules 1991 referred to in the Regulations may be inspected or copies obtained at the offices of LAUTRO situated at Centre Point, 103 New Oxford Street, London WC1A 1QH.

Authority for the retrospective effect of these Regulations is conferred by section 76(7A)(b) of the Act.

[1] 1988 c. 1; subsection (7A) was inserted by section 47(2), and subsection (8) was substituted by section 47(3), of the Finance Act 1991 (c. 31). back

[2] (Section 76 was amended by section 87(2) of the Finance Act 1989 (c. 26), section 44(3) of, and paragraph 1 of Schedule 7 to, the Finance Act 1990 (c. 29), and section 47 of, paragraph 1 of Schedule 7 to, and Part V of Schedule 19 to, the Finance Act 1991. back