The Insurance Companies (Taxation of Reinsurance Business) Regulations 1995
Section 442A of the Income and Corporation Taxes Act 1988 (“section 442A”) (inserted by paragraph 34 of Schedule 8 to the Finance Act 1995) provides for the taxation of the investment return on an insurance policy or annuity contract which is the subject of a reinsurance arrangement by the insurance company concerned. These Regulations make provision in relation to the calculation of the investment return, and also exclude certain reinsurance arrangements and policies from the operation of section 442A. Finally the Regulations exclude certain reinsurance business from specified provisions of the Income and Corporation Taxes Act 1988 concerned with reinsurance business.