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