Finance Act 1998 (c. 36) (c. 36)

(The document as of February, 2008)

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" (ca) adapting or modifying the provisions of Chapter II of Part XIII in relation to cases where--

(i) an investor ceases to be, and is treated as not having been, entitled to relief from tax in respect of investments; or

(ii) an investor who was not entitled to relief has been given relief on the basis that he was;

(cb) securing that plan managers (as well as investors) are liable to account for amounts becoming due from investors as a consequence of any regulations made by virtue of paragraph (ca) above;

(cc) that an investor under a plan or a plan manager is, in prescribed cases where relief has been given to which there was no entitlement, to be liable to a penalty of a prescribed amount, instead of to any obligation to account as mentioned in paragraph (b) or (cb) above;

(cd) that liabilities equivalent to any of those which, by virtue of any of the preceding paragraphs of this subsection, may be imposed in cases where relief has been given to which there was no entitlement are to arise (in place of the liabilities to tax otherwise arising) in other cases where, in relation to any plan--

(i) a prescribed contravention of, or failure to comply with, the regulations, or

(ii) the existence of such other circumstances as may be prescribed,

would have the effect (subject to the provision made by virtue of this paragraph) of excluding or limiting an entitlement to relief; " .

(6) In section 151(2) of the [1992 c. 12.] Taxation of Chargeable Gains Act 1992 (application of subsections (2) to (5) of section 333 of the Taxes Act 1988 to relief from capital gains tax in respect of investments under plans), for "(2)" there shall be substituted "(1A)".

76 Tax credits for accounts and for PEPs

(1) Section 30 of the [1997 c. 58.] Finance (No. 2) Act 1997 (which provides, in relation to distributions on or after 6th April 1999, for the excess of tax credit over income tax liability to cease to be payable under section 231(3) of the Taxes Act 1988 to persons who are not companies resident in the United Kingdom) shall have effect in accordance with subsection (2) below in relation to any distribution if--

(a) it is a distribution made before 6th April 2004;

(b) it is received by an individual in respect of an investment made under a plan for which provision is made by regulations under section 333 of the Taxes Act 1988 (individual savings accounts and personal equity plans); and

(c) that investment is one in respect of which that individual is entitled to relief in accordance with such regulations.

(2) That section of that Act of 1997 shall have effect in relation to such a distribution as if--

(a) subsection (5) of that section did not make the substitution set out in paragraph (a) or the repeal set out in paragraph (b);

(b) subsections (6), (7) and (9) of that section were to be disregarded; and

(3) The Treasury may by regulations make provision for individuals who--

(a) are not resident in the United Kingdom, but

(b) have made investments under plans for which provision is made by regulations under section 333 of the Taxes Act 1988,

to be treated in relation to any such investments as if they were so resident for the purposes of any enactment conferring an entitlement to, or to the payment of, tax credits.

(4) Subsection (4) of section 231 of the Taxes Act 1988 (persons treated as in receipt of a tax credit) applies for the purposes of this section as it applies for the purposes of that section.

(5) Schedule 8 to the [1997 c. 58.] Finance (No. 2) Act 1997 (repeals), so far as it relates to the repeal made by section 30(5)(b) of that Act, shall have effect subject to the preceding provisions of this section.

77 The insurance element etc

(1) In Chapter IV of Part VII of the Taxes Act 1988, after section 333A there shall be inserted the following section--

" 333B Involvement of insurance companies with plans and accounts

(1) The Treasury may make regulations providing exemption from tax for income from, and chargeable gains in respect of, investments and deposits of so much of an insurance company's long term business fund as is referable to section 333 business.

(2) The Treasury may by regulations modify the effect of section 30(4) of the [1997 c. 58.] Finance (No. 2) Act 1997 (which repeals section 231(2) of the Taxes Act 1988 with effect from 6th April 1999) in relation to distributions which--

(a) are made before 6th April 2004; and

(b) are received by an insurance company in respect of investments of so much of its long term business fund as is referable to section 333 business.

(3) Regulations under this section may make provision for insurance companies that are not resident in the United Kingdom to be treated, in relation to investments of so much of their long term business funds as are referable to section 333 business--

(a) as if they were so resident for the purposes of any enactment conferring an entitlement to, or to the payment of, tax credits in respect of investments; and

(b) as if such other conditions of any entitlement to, or to the payment of, tax credits were also satisfied.

(4) Regulations under section 333 or this section may include provision which, in relation to insurance companies that are not resident in the United Kingdom--

(a) requires a person to be appointed to be responsible for securing the discharge of any duties to which such an insurance company is subject under the regulations; and

(b) confers rights and powers, and imposes liabilities, on a person so appointed;

and, without prejudice to the generality of paragraphs (a) and (b) above, regulations made by virtue of this subsection may include any provision corresponding to any that, in relation to a European institution, may be made under section 333A.

(5) Regulations under this section may provide that an insurance company--

(a) shall comply with any notice served on it by the Board which requires it, within a prescribed period, to make available for the Board's inspection documents (of a prescribed kind) relating to, or to matters connected with, its past or present section 333 business; and

(b) shall, within a prescribed period of being required to do so by the Board, furnish to the Board information (of a prescribed kind) about its past or present section 333 business or any matters connected with it.

(6) Any power of the Treasury under this section to make provision by regulations in relation to insurance companies shall include power by regulations to make such corresponding provision in relation to friendly societies as the Treasury think fit.

(7) Regulations under this section may--

(a) for purposes connected with any exemption from tax conferred by virtue of subsection (1) above, apply or modify any provision made by or under the Tax Acts;

(b) make different provision for different cases;

(c) include such incidental, supplemental, consequential and transitional provision as the Treasury may consider appropriate.

(8) Without prejudice to the generality of the powers conferred by subsection (7) above, the provision that may be made in connection with an exemption from tax conferred by virtue of subsection (1) above shall include provision for section 436 to apply (with any such modifications as may be prescribed) in relation to section 333 business as it applies in relation to pension business.

(9) In this section--

"friendly society" has the same meaning as in Chapter II of Part XII;
"insurance company" means an insurance company within the meaning of the [1982 c. 50.] Insurance Companies Act 1982;
"long term business fund" has the same meaning as in Chapter I of Part XII;
"prescribed" means prescribed by regulations under this section;
"section 333 business", in relation to an insurance company, means the business of the company that is attributable to the making of investments with that company under plans for which provision is made by regulations under section 333. "

(2) In each of the columns of the Table in section 98 of the [1970 c. 9.] Taxes Management Act 1970 (penalties for failure to comply with notice or to furnish information), after the entry relating to regulations under section 333 of the Taxes Act 1988 there shall be inserted the following entry-- " regulations under section 333B; " .

78 Phasing out of TESSAs

In subsection (3) of section 326A of the Taxes Act 1988 (account must be opened on or after 1st January 1991), after "1991" there shall be inserted "and before 6th April 1999".

Relief for interest and losses etc.

79 Relief for loan to acquire interest in a close company

(1) At the end of subsection (3A) of section 360 of the Taxes Act 1988 (loan to buy interest in close company) there shall be inserted the words "or makes a claim in respect of them under Schedule 5B to the 1992 Act".

(2) This section has effect in relation to shares acquired on or after 6th April 1998.

80 Relief for losses on unlisted shares in trading companies

(1) At the beginning of subsection (1) of section 576 of the Taxes Act 1988 (provisions supplementary to sections 573 to 575) there shall be inserted the words "Subject to subsections (1A) and (1B) below,".

(2) After that subsection there shall be inserted the following subsections--

" (1A) Subsection (1B) below applies where the holding mentioned in subsection (1) above comprises any of the following, namely--

(a) shares issued before 1st January 1994 in respect of which relief has been given under Chapter III of Part VII and has not been withdrawn;

(b) shares issued on or after that date to which relief under that Chapter is attributable; and

(1B) Any such question as is mentioned in subsection (1) above shall not be determined as provided by that subsection, but shall be determined instead--

(a) in the case of shares issued before 1st January 1994, as provided by subsections (3) to (4C) of section 299 as it has effect in relation to such shares; and

(b) in the case of shares issued on or after that date, as provided by subsections (6) to (6D) of that section as it has effect in relation to such shares. "

(3) For subsection (4) of that section there shall be substituted the following subsections--

" (4) For the purposes of sections 573 to 575 and this section a qualifying trading company is a company which at all times in the relevant period has been an unquoted company (within the meaning given by section 312) and which--

(a) either--

(i) is an eligible trading company on the date of the disposal; or

(ii) has ceased to be an eligible trading company at a time which is not more than three years before that date and has not since that time been an excluded company, an investment company or a trading company that is not an eligible trading company; and

(b) either--

(i) has been an eligible trading company for a continuous period of six years ending on that date or at that time; or

(ii) has been an eligible trading company for a shorter continuous period ending on that date or at that time and has not before the beginning of that period been an excluded company, an investment company or a trading company that is not an eligible trading company; and

(4A) A company is an eligible trading company for the purposes of subsection (4) above at any time when, or in any period throughout which, it would comply with the requirements of section 293 if--

(a) the provisions mentioned in subsection (4B) below were omitted;

(b) the references in subsection (6) of section 293 to dissolution were omitted and the condition in paragraph (b) of that subsection were a condition that the company continue to be a trading company within the meaning of subsection (5) below;

(c) the reference in section 293(6A) to the eligible shares were a reference to the shares in respect of which relief is claimed under section 573 or 574;

(d) any reference in section 293, 297 or 308 to the relevant period were a reference to the time that is relevant for the purposes of subsection (4)(a) above or, as the case may require, the continuous period that is relevant for the purposes of subsection (4)(b) above;

(e) the reference in section 304A(1)(e)(i) to eligible shares were a reference to shares in respect of which relief is claimed under section 573 or 574;

(f) references in section 304A(3) to an individual were references to a person;

(g) the reference in section 304A(4) to section 304 were a reference to section 574(3)(b); and

(h) the reference in section 304A(6) to the expressions "eligible shares" and "subscriber shares" were a reference to the expression "subscriber shares".

(4B) The provisions are--

(a) in section 293, the words "Subject to section 294," in subsection (1), the words "an unquoted company and be" in subsection (2), and subsections (8A) and (8B);

(b) sections 294 to 296;

(c) in section 298(5), the words "and section 312(1A)(b) shall apply to determine the relevant period for the purposes of that section";

(d) in section 304A, subsections (1)(e)(ii) and (2)(b), in subsection (3), the words "to which relief becomes so attributable" and paragraphs (c) and (d), in subsection (4), the words "to which relief becomes so attributable" and paragraphs (c) and (d), and subsection (5); and

(e) section 308(5A). "

(4) In subsection (5) of that section--

(a) in the definition of "excluded company", for the words "dealing in shares, securities, land, trades or commodity futures" there shall be substituted the words "dealing in land, in commodities or futures or in shares, securities or other financial instruments,";

(b) in the definition of "relevant period", for the words "subscribed for" there shall be substituted the word "issued";

" "shares"--

(a) except in subsections (1A) and (1B) above, includes stock; but

(b) except in the definition of "excluded company", does not include shares or stock not forming part of a company's ordinary share capital; " and

(d) in the definition of "trading group", the words "or not resident in the United Kingdom" shall cease to have effect.

(5) In this section--

(a) subsections (1) and (2) have effect in relation to disposals made on or after 6th April 1998; and

(b) subsections (3) and (4) have effect in relation to shares issued on or after that date.

81 Group relief: special rules for consortium cases

(1) Section 403C of the Taxes Act 1988 (which imposes limits, based on the former section 403(9), on the amounts which may be set off where the surrendering company or, as the case may be, the claimant company is a member of a consortium) shall be amended as follows.

(2) In subsection (1)(a) (case where the surrendering company is a member of the consortium) for "surrendering company" there shall be substituted "claimant company".

(3) In subsection (2)(a) (case where the claimant company is a member of the consortium) for "claimant company" there shall be substituted "surrendering company".

(4) In consequence of the amendments made by subsections (2) and (3) above, in subsection (3) (which defines "the relevant fraction" by reference to the member company's share in the consortium)--

(a) in paragraph (a) (meaning in a case falling within subsection (1)) for "surrendering company's" there shall be substituted "claimant company's"; and

(b) in paragraph (b) (meaning in a case falling within subsection (2)) for "claimant company's" there shall be substituted "surrendering company's".

(5) Section 403C of the [1997 c. 58.] Taxes Act 1988 and Schedule 7 to the Finance (No. 2) Act 1997 (which, among other things, inserted that section into the Taxes Act 1988) shall have effect, and be deemed always to have had effect, as if that section had been originally enacted in that Schedule with the amendments made by this section.

82 Carry forward of non-trading deficit on loan relationships

(1) In section 83 of the [1996 c. 8.] Finance Act 1996 (non-trading deficit on loan relationships), for subsections (3) and (4) substitute--

" (3) So much of the deficit for the deficit period as is not the subject of a claim under subsection (2) above shall be carried forward and treated as a deficit for the next accounting period.

(4) An amount carried forward to an accounting period under subsection (3) above--

(a) may be the subject of a claim under paragraph (d) of subsection (2) above, but not under any other paragraph of that subsection, and

(b) shall be disregarded for the purposes of any claim under that subsection relating to a deficit arising in that period. " .

(2) Section 797 (limits on credit: corporation tax) and section 797A (foreign tax on interest brought into account as a non-trading credit) of the Taxes Act 1988 are amended as follows--

(a) in section 797(3B)(b), omit "or in accordance with subsection (3) of that section";

(b) in section 797A(5), at the end of paragraph (a) insert the word "and" and omit paragraph (c) and the word "and" preceding it;

(c) at the end of section 797A(5), insert-- " An amount carried forward to the applicable accounting period under section 83(3) of that Act shall not be treated as a non-trading deficit for that period for the purposes of paragraphs (a) and (b). " ;

(d) in section 797A(6), for "specified in subsection (5)(c) above" substitute "carried forward to the applicable accounting period in pursuance of a claim under section 83(2)(d) of that Act";

(e) at the end of section 797A(7) insert-- " An amount carried forward to the applicable accounting period under section 83(3) of the [1996 c. 8.] Finance Act 1996 shall be disregarded for the purposes of paragraphs (a) and (b). " .

(3) The following amendments of Schedule 28A to the Taxes Act 1988 (change in ownership of investment company: deductions) are consequential on the amendment in subsection (1) above--

(a) in paragraph 6(da), after "period" insert "(other than one within sub-paragraph (dc) below)";

(b) in paragraph 6(db), omit "(dc) or";

(c) in paragraph 6(dc), for "debit given for that accounting period by" substitute "deficit carried forward to that accounting period under";

(d) in paragraph 7(1)(b), for "debit" substitute "deficit";

(e) in paragraph 11(2), omit paragraph (a);

(f) in paragraph 13(1)(ea), after "period" insert "(other than one within paragraph (ec) below)";

(g) in paragraph 13(1)(eb), omit "(ec) or";

(h) in paragraph 13(1)(ec), for "debit given for that accounting period by" substitute "deficit carried forward to that accounting period under";

(i) in paragraph 16(1)(b), for "debit" substitute "deficit".

(4) The amendments made by this section shall be deemed always to have had effect.

Capital allowances

83 First-year allowances for investment in Northern Ireland

(1) In section 22 of the [1990 c. 1.] Capital Allowances Act 1990 (first-year allowances), after subsection (3C) there shall be inserted the following subsections--

" (3CA) Subject to the provisions of this Part, this section applies to--

(a) any expenditure incurred in the special relief period by a small company or a small business on the provision of machinery or plant for use primarily in Northern Ireland; and

(b) any additional VAT liability incurred in respect of expenditure to which this section applies by virtue of paragraph (a) above.

(3CB) For the purposes of subsection (3CA) above expenditure is incurred in the special relief period if, disregarding any effect of section 83(2) on the time at which it is to be treated as incurred, it is incurred in the period beginning with 12th May 1998 and ending with 11th May 2002.

(3CC) Expenditure is not expenditure to which this section applies by virtue of subsection (3CA) above in so far as it is--

(a) expenditure to which Chapter IVA applies; or

(b) expenditure on the provision of an aircraft or hovercraft. "

(2) After subsection (6C) of that section there shall be inserted the following subsections--

" (6D) Expenditure incurred on the provision of machinery or plant shall not be taken to be expenditure to which this section applies by virtue of subsection (3CA) above if--

(a) at the time when the expenditure is incurred, the person incurring it intends the machinery or plant to be used partly outside Northern Ireland; and

(b) the main benefit, or one of the main benefits, which could reasonably be expected to arise from the relevant arrangements is the obtaining of a first-year allowance, or a greater first-year allowance, in respect of the part of the expenditure that is attributable to the intended outside use.

(6E) In subsection (6D) above--

(a) "the relevant arrangements" means the transaction under which the expenditure is incurred and any scheme or arrangements of which that transaction forms part;

(b) "the intended outside use" means so much of the use of the machinery or plant as (at the time mentioned in paragraph (a) of that subsection) the person intends will be use outside Northern Ireland; and

(c) the reference to the part of the expenditure that is attributable to that use is a reference to so much of the expenditure in question as is so attributable on a just and reasonable basis. "

(3) In subsection (10) of that section after "this section--" there shall be inserted--

" "hovercraft" has the same meaning as in the [1968 c. 59.] Hovercraft Act 1968. "

(4) After section 22A of that Act there shall be inserted the following section--

" 22B Withdrawal of first-year allowance on change of use

(1) Where (but for this section) section 22 would apply to any expenditure by virtue of subsection (3CA) of that section, that section shall be deemed never to have so applied to that expenditure if, at any relevant time--

(a) the primary use to which the machinery or plant is put is a use outside Northern Ireland; or

(b) the machinery or plant is held for use otherwise than primarily in Northern Ireland.

(2) In subsection (1) above "a relevant time", in relation to any expenditure, means a time which--

(a) falls in the period of two years beginning with the date of the incurring of that expenditure; and

(b) is a time when the machinery or plant belongs to the person who incurred the expenditure or to a person who (within the terms of section 839 of the principal Act) is, or at any time in that period has been, connected with the person who incurred the expenditure.

(3) All such assessments and adjustments of assessments shall be made as may be necessary in consequence of this section.

(4) Where a person who has made a return becomes aware that anything contained in that return has, after the making of the return, become incorrect by reason of the operation of this section, he shall, within three months of first becoming so aware, give notice to an officer of the Board of the amendments that are necessitated in his return in the light of the matter of which he has become aware. "

(5) In the second column of the Table in section 98 of the [1970 c. 9.] Taxes Management Act 1970 (penalties in respect of certain information provisions), in the entry relating to provisions of the [1990 c. 1.] Capital Allowances Act 1990, after "Sections" there shall be inserted "22B(4),".

(6) Subject to subsection (7) below, the preceding provisions of this section have effect in relation to every chargeable period ending on or after 12th May 1998.

(7) No claim for an allowance falling to be made by virtue of subsection (1) above may be made at any time before such date as the Treasury may by order appoint; and where the period for making any such claim would (but for this subsection) have expired before the end of the period of twelve months beginning with that date, it shall expire, instead, at the end of that period of twelve months.

84 First-year allowances for small businesses etc

(1) In subsection (1) of section 22 of the [1990 c. 1.] Capital Allowances Act 1990 (which provides for first-year allowances at the rate, in the case of expenditure falling within subsection (3B), of 40 per cent.), after "(3B)" there shall be inserted "or (3D)".

(2) After the subsection (3CC) of that section inserted by section 83 above there shall be inserted the following subsection--

" (3D) This section applies to the following expenditure except in so far as it is expenditure to which Chapter IVA applies, that is to say--

(a) any expenditure which, disregarding any effect of section 83(2) on the time at which it is to be treated as incurred, is incurred by a small company or a small business in the period beginning with 2nd July 1998 and ending with 1st July 1999; and

(b) any additional VAT liability incurred in respect of expenditure to which this section applies by virtue of paragraph (a) above. "

(3) The preceding provisions of this section have effect in relation to every chargeable period ending on or after 2nd July 1998.

85 First-year allowances: consequential amendments etc

(1) In each of subsections (4), (6B) and (6C) of section 22 of the [1990 c. 1.] Capital Allowances Act 1990 (first-year allowances), for "subsection (3C)" there shall be substituted "one or more of subsections (3C), (3CA) and (3D)".

(2) In section 22A of that Act (expenditure of a small company or small business)--

(a) in subsection (4), for the words "parent company", wherever they occur, there shall be substituted "parent undertaking"; and

(b) in subsection (6), for ""parent company"" there shall be substituted ""parent undertaking"".

(3) In subsection (8) of that section, after paragraph (b) there shall be inserted-- " but for the purposes of this section each of those provisions shall be construed as if references, in relation to a group, to the parent company were references to the parent undertaking. "

(4) In sections 23(6), 42(9) and 50(3) and (4A) of that Act (which contain provisions relating to the temporary first-year allowances under section 22(3B) and (3C) of that Act), for the words "subsection (3B) or (3C)", in each place where they occur, there shall be substituted "one or more of subsections (3B), (3C), (3CA) and (3D)".

(5) In sections 44(5), 46(8) and 48(7) of that Act (which also contain provisions relating to the temporary first-year allowances under section 22(3B) and (3C) of that Act), for the words "or (3C)", in each place where they occur, there shall be substituted ", (3C), (3CA) or (3D)".

(6) In section 39(2)(a) of that Act (definition of qualifying purpose), for "subsections (2) to (3C)" there shall be substituted "subsections (2) to (3D)".

(7) In section 43(5) of that Act (provisions relating to joint lessees in cases involving new expenditure), after "(3C)" there shall be inserted ", (3CA) or (3D)".

(8) In section 76 of that Act (which modifies the effect of section 75 in cases where machinery or plant has not been used before a sale)--

(a) subsection (3) shall cease to have effect; and

(b) in subsection (4), for ", (2B) and (3)" there shall be substituted "and (2B)".

(9) Subsections (1) and (4) to (8) above have effect in relation to every chargeable period ending on or after 12th May 1998.

(10) Subject to subsection (11) below, subsections (2) and (3) above have effect in relation to expenditure incurred on or after 12th May 1998.

(11) Subsections (2) and (3) above do not have effect--

(a) for the purpose of determining whether any expenditure is expenditure to which section 22 of that Act applies by virtue of subsection (3C) of that section; or

(b) for the purpose of determining whether any expenditure incurred in pursuance of a contract entered into before 12th May 1998 is expenditure to which that Act applies by virtue of subsection (3D) of that section.

Insurance, insurance companies and friendly societies

86 Life policies etc

Schedule 14 to this Act (which makes provision in relation to the taxation of life policies etc under Chapter II of Part XIII of the Taxes Act 1988) shall have effect.

87 Non-resident insurance companies: tax representatives

After section 552 of the Taxes Act 1988 (duty of insurers to provide certain information) there shall be inserted--

" 552A Tax representatives

(1) This section has effect for the purpose of securing that, where it applies to an overseas insurer, another person is the overseas insurer's tax representative.

(2) In this section "overseas insurer" means a person who is not resident in the United Kingdom who carries on a business which consists of or includes the effecting and carrying out of--

(a) policies of life insurance;

(b) contracts for life annuities; or

(3) This section applies to an overseas insurer--

(a) if the condition in subsection (4) below is satisfied on the designated day; or

(b) where that condition is not satisfied on that day, if it has subsequently become satisfied.

(4) The condition mentioned in subsection (3) above is that--

(a) there are in force relevant insurances the obligations under which are obligations of the overseas insurer in question or of an overseas insurer connected with him; and

(b) the total amount or value of the gross premiums paid under those relevant insurances is £1 million or more.

(5) In this section "relevant insurance" means any policy of life insurance, contract for a life annuity or capital redemption policy in relation to which this Chapter has effect and in the case of which--

(a) the holder is resident in the United Kingdom;

(b) the obligations of the insurer are obligations of a person not resident in the United Kingdom; and

(6) Before the expiration of the period of three months following the day on which this section first applies to an overseas insurer, the overseas insurer must nominate to the Board a person to be his tax representative.

(7) A person shall not be a tax representative unless--

(a) if he is an individual, he is resident in the United Kingdom and has a fixed place of residence there, or

(b) if he is not an individual, he has a business establishment in the United Kingdom,

and, in either case, he satisfies such other requirements (if any) as are prescribed in regulations made for the purpose by the Board.

(8) A person shall not be an overseas insurer's tax representative unless--

(a) his nomination by the overseas insurer has been approved by the Board; or

(b) he has been appointed by the Board.

(9) The Board may by regulations make provision supplementing this section; and the provision that may be made by any such regulations includes provision with respect to--

(a) the making of a nomination by an overseas insurer of a person to be his tax representative;

(b) the information which is to be provided in connection with such a nomination;

(d) the powers and duties of the Board in relation to such a nomination;

(e) the procedure for approving, or refusing to approve, such a nomination, and any time limits applicable to doing so;

(f) the termination, by the overseas insurer or the Board, of a person's appointment as a tax representative;

(g) the appointment by the Board of a person as the tax representative of an overseas insurer (including the circumstances in which such an appointment may be made);

(h) the nomination by the overseas insurer, or the appointment by the Board, of a person to be the tax representative of an overseas insurer in place of a person ceasing to be his tax representative;

(j) circumstances in which an overseas insurer to whom this section applies may, with the Board's agreement, be released (subject to any conditions imposed by the Board) from the requirement that there must be a tax representative;

(k) appeals to the Special Commissioners against decisions of the Board under this section or regulations under it.

(10) The provision that may be made by regulations under subsection (9) above also includes provision for or in connection with the making of other arrangements between the Board and an overseas insurer for the purpose of securing the discharge by or on behalf of the overseas insurer of the relevant duties, within the meaning of section 552B.

(11) Section 839 (connected persons) applies for the purposes of this section.

(12) In this section--

"the designated day" means such day as the Board may specify for the purpose in regulations;
"tax representative" means a tax representative under this section.

552B Duties of overseas insurers' tax representatives

(1) It shall be the duty of an overseas insurer's tax representative to secure (where appropriate by acting on the overseas insurer's behalf) that the relevant duties are discharged by or on behalf of the overseas insurer.

(2) For the purposes of this section "the relevant duties" are--

(a) the duties imposed by section 552,

(b) any duties imposed by regulations made under subsection (4A)(a) of that section, and

(c) any duties imposed by regulations made under subsection (4A)(b) of that section by virtue of subsection (4B) of that section,

so far as relating to relevant insurances under which the overseas insurer in question has any obligations.

(3) An overseas insurer's tax representative shall be personally liable--

(a) in respect of any failure to secure the discharge of the relevant duties, and

(b) in respect of anything done for purposes connected with acting on the overseas insurer's behalf,

as if the relevant duties were imposed jointly and severally on the tax representative and the overseas insurer.

(4) In the application of this section in relation to any particular tax representative, it is immaterial whether any particular relevant duty arose before or after his appointment.

(5) This section has effect in relation to relevant duties relating to chargeable events happening on or after the day by which section 552A(6) requires the nomination of the overseas insurer's first tax representative to be made.

(6) Expressions used in this section and in section 552A have the same meaning in this section as they have in that section. "

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