type: legislation

jurisdiction: UK

text:
1
This Order may be cited as the Value Added Tax Act 1994 (Interest on Tax) (Prescribed Rate) Order 1995 and shall come into force on 6th March 1995.
2
For the purposes of section 74 of the Value Added Tax Act 1994 the prescribed rate shall be 7 per cent.
Timothy Kirkhope
Andrew Mitchell
Two of the Lords Commissioners of Her Majesty’s Treasury
1st March 1995


text:
Citation, commencement and effect
1
These Regulations may be cited as the Friendly Societies (Taxation of Transfers of Business) Regulations 1995 and shall come into force on 17th February 1995, but except as otherwise provided shall have effect in relation to transfers, amalgamations and conversions taking place on or after 1st January 1990.
Interpretation
2
In these Regulations —
“directive society” means a friendly society to which section 37(2) of the Friendly Societies Act 1992 applies;
“non-directive society” means a friendly society other than a directive society; “section 37(3) society” means a non-directive society which —
falls within subsection (3) of section 37 of the Friendly Societies Act 1992, and
is a friendly society to which subsection (8) of that section applies;
“the Taxes Act ” means the Income and Corporation Taxes Act 1988.
Transfer of long term business of an insurance company to a friendly society
3
1
The provisions of the Corporation Tax Acts which apply on the transfer of the whole or part of the long term business of an insurance company to another company shall have effect where the transferee is a friendly society.
2
This regulation shall have effect in relation to transfers taking place on or after 2nd July 1990.
Modifications of the Corporation Tax Acts in certain cases
4
1
In the case of —
a
the transfer of the whole or part of the business of a friendly society to another friendly society; or
b
the amalgamation of two or more friendly societies; or
c
the transfer of the whole or part of the business of a friendly society to a company which is not a friendly society; or
d
the conversion of a friendly society into a company which is not a friendly society; or
such of the provisions of the Corporation Tax Acts as are specified in paragraph (2) below and apply in relation to that case (being provisions which apply by virtue of section 463(2) of the Taxes Act) shall each have effect as if the words “in accordancewith a scheme sanctioned by a court under section 49 of the Insurance Companies Act 1982 ” were omitted.
2
The provisions of the Corporation Tax Acts specified in this paragraph are —
a
section 267A(1) of the Income and Corporation Taxes Act 1970
b
sections 12(7A) , 440(2) and 444A(1) of the Taxes Act,
c
section 152A(1) of the Capital Allowances Act 1990 ,
d
paragraph 6(1) of Schedule 8 to the Finance Act 1990 , and
e
sections 211(1), 213(5), 214(11) and 214A(7) of the Taxation of Chargeable Gains Act 1992 .
Modifications of section 440 of the Taxes Act in certain cases
5
1
This regulation applies to the following cases, that is to say —
a
the transfer of the whole or part of the business of a directive society or a section 37(3) society to a non-directive society;
b
the transfer of the whole or part of the business of a non-directive society to a directive society or a section 37(3) society;
c
the amalgamation of a directive society or a section 37(3) society and a non-directive society;
d
the transfer of the whole or part of the business of a non-directive society to a company which is not a friendly society; and
e
the conversion of a non-directive society into a company which is not a friendly society.
2
In any case to which this regulation applies, section 440(2) of the Taxes Act, in so far as it applies in relation to that case by virtue of section 463(2) of the Taxes Act, shall not have effect in relation to any assets which —
a
cease to be within the category in paragraph (d) of subsection (4) of section 440 of the Taxes Act and come within the category in paragraph (e) of that subsection; or
b
cease to be within the category in paragraph (e) of that subsection and come within the category in paragraph (d) of that subsection.
Tim Wood
Andrew Mitchell
Two of the Lords Commissioners of Her Majesty’s Treasury
25th January 1995


text:
PART I
GENERAL
Citation, commencement and interpretation
1
1
This Order, which may be cited as the Housing Benefit and Council Tax Benefit (Subsidy) Order 1995, shall come into force on 20th April 1995.
2
In this Order, unless the context otherwise requires —
“ the Act ” means the Social Security Administration Act 1992;
“period overrun” has the meaning assigned to it by paragraph 1 of Schedule 4;
“relevant year” means the year ending 31st March 1995;
“the 1991 Order ” means the Housing Benefit and Community Charge Benefit (Subsity) Order 1991 ;
“the 1992 Order ” means the Housing Benefit and Community Charge Benefit (Subsidy) Order 1992 ;
“the 1993 Order ” means the Housing Benefit and Community Charge Benefit (Subsidy) (No.2) Order 1993 , and
“the 1994 Order ” means the Housing Benefit and Council Tax Benefit (Subsidy) Order 1994 .
3
In this Order, a reference to a numbered article or Schedule is to the article in, or Schedule to, this Order bearing that number and, unless the context otherwise requires, a reference in an article or a Schedule to a numbered paragraph or Part is to the paragraph or Part, as the case may be, bearing that number in that article or that Schedule.
PART II
HOUSING BENEFIT SUBSIDY
Interpretation of Part II
2
1
In this Part of this Order, unless the context otherwise requires —
“allowance” means a rent allowance;
“authority” means a housing or, as the case may be, local authority;
“board and lodging accommodation” means —
accommodation provided for a charge which is inclusive of the provision of that accommodation and at least some cooked or prepared meals which are both cooked or prepared and consumed in that accommodation or associated premises; or
accommodation provided in a hotel, guest house, lodging house or some similar establishment, but it does not include accommodation in a residential care home or nursing home within the meaning of regulation 19(3) of the Income Support (General) Regulations 1987 nor in a hostel within the meaning of regulation 12A of the Housing Benefit Regulations ;
“development corporation” has the meaning ascribed to it in section 2 of the New Towns (Scotland) Act 1968 ;
“housing benefit subsidy” means subsidy under section 135(1) of the Act (rate rebate, rent rebate and rent allowance subsidy payable) and under section 30(1A) of the Social Security Act 1986 (community charge rebate subsidy payable);
“rebate” means a rent rebate excluding, in the case of England and Wales, any Housing Revenue Account rebates ;
“relevant date” has the meaning it is given for the purposes of Schedule 6 in paragraph 7 of that Schedule;
“scheme” means the housing benefit scheme as defined in section 123 of the Social Security Contributions and Benefits Act 1992 ;
“the Housing Benefit Regulations” means the Housing Benefit (General) Regulations 1987 ;
“the Rent Officers Order ” means the Rent Officers (Additional Functions) Order 1990 or, as the case may be, the Rent Officers (Additional Functions) (Scotland) Order 1990 ;
“termination date” has the meaning it is given for the purposes of Schedule 6 in paragraph 8 of that Schedule, and other expressions used in this Order and in the Housing Benefit Regulations shall have the same meanings in this Order as in those Regulations.
2
In this Part of this Order —
“housing benefit qualifying expenditure” means the total of rebates and allowances, including any payments under regulation 91 of the Housing Benefit Regulations (payments on account of a rent allowance), granted by the authority during the relevant year, less —
a
the deduction, if any, calculated for that authority in article 6;
b
any allowances to which paragraph (7) of article 8 or paragraph 6 of Schedule 6, as the case may be, apply;
c
any rebates to which paragraph (4) of article 9 applies;
d
the deductions specified in article 11, and
e
where, under subsection (8) of section 134 of the Act (arrangements for housing benefit), the authority has modified any part of the scheme administered by it, any amount by which the total of the rebates or allowances which it granted under the scheme during the relevant year exceeds the total of those which it would have granted if the scheme had not been so modified.
Amount of housing benefit subsidy
3
The amount of an authority’s housing benefit subsidy for the relevant year —
a
for the purposes of section 135(2) of the Act (subsidy in respect of rebates or allowances) shall be the amount or total of the amounts calculated in accordance with article 4;
b
for the purposes of section 135(5) of the Act (subsidy in respect of the costs of administering housing benefit) may include an additional sum in respect of the costs of administering housing benefit calculated in accordance with Schedules 1 and 2.
Rebates and allowances
4
1
Subject to any adjustment in accordance with paragraph (3), for the purposes of section 135(2) of the Act, an authority’s housing benefit subsidy for the relevant year shall, subject to paragraph (2), be —
a
in the case of an authority to which articles 5,7,8 and 9(1) to (3) do not apply, 95 per cent. of its housing benefit qualifying expenditure;
b
in the case of an authority to which at least one of those articles is relevant an amount equal to the aggregate of —
i
95 per cent. of so much of its housing benefit qualifying expenditure as remains after deducting from total qualifying expenditure the amount of expenditure attributable to the rebates or allowances to which each of those articles which is relevant applies; and
ii
the appropriate amount calculated in respect of the rebates or allowances under each such article.
plus, in each case, the additions, where applicable, under articles 9(5), 10 and 13(2), but subject, in each case, to the deductions, where applicable, under articles 12 and 13(3).
2
Where the authority is the Scottish Homes or a development corporation, its housing benefit subsidy for the relevant year shall include a further sum being —
a
in the case of an authority to which sub-paragraph (a) of paragraph (1) applies, 5.5 per cent. of its housing benefit qualifying expenditure, but subject to the relevant maximum specified in column (2) of Schedule 3; or
b
in the case of an authority to which sub-paragraph (b) of paragraph (1) applies, 5.5 per cent. of so much of its housing benefit qualifying expenditure as remains after the deductions set out in paragraph (1)(b)(i), but subject to the relevant maximum specified in column (2) of Schedule 3.
3
Where, during the relevant year there is a period overrun in respect of either rebates or allowances, or both, then the housing benefit subsidy for the authority for that year shall be adjusted by the deduction from the subsidy otherwise due under this article of —
a
an amount equal to the percentage, as calculated in accordance with paragraph 2 of Schedule 4, of that part of the housing benefit qualifying expenditure for that authority attributable to expenditure in respect of allowances to the extent that the overrun relates to allowances; and
b
an amount equal to the percentage, as calculated in accordance with paragraph 3 of Schedule 4, of that part of the housing benefit qualifying expenditure for that authority attributable to expenditure in respect of rebates to the extent that the overrun relates to rebates.
Backdated benefit
5
1
Subject to paragraph (2), where —
a
during the relevant year an authority has, under paragraph (15) of regulation 72 of the Housing Benefit Regulations, treated any claim for a rebate or allowance as made on a day earlier than that on which it is made; and
b
any part of that authority’s housing benefit qualifying expenditure is attributable to such earlier period,
for the purposes of article 4(1)(b)(ii), the appropriate amount for the relevant year in respect of such part shall be 50 per cent. of the housing benefit qualifying expenditure so attributable.
2
This article shall not apply in a case to which article lO(1)(b)(ii) applies.
Disproportionate rent increase
6
1
Except where paragraph (5) or (6) applies, in the case of an authority in Scotland or the Development Board for Rural Wales, where the average rent increase differential, as calculated in accordance with paragraph (2), for such an authority has a value greater than zero, the deduction from housing benefit qualifying expenditure specified in article 2(2)(a) shall be that proportion of the sum calculated for that authority in accordance with paragraph (4).
2
The average rent increase differential for each appropriate authority shall be calculated by applying the formula —
(
1
+
A
)
×
{
B
C
×
D
E
}
-
1
where
A, B, C, D and E each has the value determined in accordance with paragraph (3).
3
For the purposes of paragraph (2) —
a
the value of A shall be the proportion calculated for that authority pursuant to paragraphs (3) and (4) of article 6 of the 1994 Order;
b
the value of B shall be the average rent charged by the authority in respect of Category 1 dwellings on the final date;
c
the value of C shall be the average rent charged by the authority in respect of Category 1 dwellings on the specified date;
d
the value of D shall be the average rent charged by the authority in respect of Category 2 dwellings on the specified date, and
e
the value of E shall be the average rent charged by the authority in respect of Category 2 dwellings on the final date.
4
The sum referred to in paragraph (1) shall be that part of housing benefit qualifying expenditure attributable to rent rebates granted during the relevant year before any deduction by reason of this article but less any part of such expenditure to which article 4(1)(b)(ii) applies.
5
This article shall not apply in the case of an authority
a
which has —
i
set the rent for the relevant year according to the type, condition, class or description of the dwellings and the services, facilities or rights provided to the tenants, where that rent is reasonable having regard to those matters;
ii
not taken account of whether a tenant was a beneficiary when setting rents for the relevant year, and
iii
not let dwellings, either in the relevant year or in either of the two previous years, to beneficiaries irrespective of their housing needs;
or
b
where —
i
any increases in rent between the specified date and the final date were of the same percentage and applied on the same day to all tenants irrespective of whether they were beneficiaries, and
ii
the average rent increase differential calculated in accordance with article 6 of the 1994 Order for that authority had a value which was zero or less than zero.
6
This article shall also not apply in a case to which article 9 applies.
7
In this article (and, in the case of the definition of “beneficiary”, also in article 11(2))
“average” means the arithmetic mean;
“beneficiary” means a person who is entitled or likely to become entitled to a rebate;
“Category 1 dwellings” means dwellings rented out by the authority on both the specified date and the final date in respect of which, on the final date, the persons liable to pay such rent were in receipt of rebates;
“Category 2 dwellings” means dwellings rented out by the authority on both the specified date and the final date in respect of which, on the final date, the persons liable to pay such rent were not in receipt of rebates;
“final date” means the 31st March 1995, but if that day falls in a rent free period the date in March which is closest to it and which does not fall in a rent free period;
“specified date” means the date in March 1994 which was defined as the third relevant date for that authority in article 6(5) of the 1994 Order, and
“rent” means either —
the payments specified in sub-paragraphs (a) to (i) in paragraph (1) of regulation 10 of the Housing Benefit Regulations (rent) ; or
the eligible rent,
as the authority may determine, provided that wherever the expression “rent” occurs in paragraph (2) it has the same meaning throughout in relation to that authority.
Treatment of high rents
7
1
Subject to paragraphs (3) and (4), where any part of the housing benefit qualifying expenditure of an authority whose area is or lies within an area identified in column 1 of Schedule 5 is attributable to any allowance granted in respect of a person whose weekly eligible rent exceeds the threshold specified in relation to that area in column 2 of that Schedule, for the purposes of article 4(1)(b)(ii), the appropriate amount in respect of that allowance shall be calculated in accordance with paragraph (2).
2
Where paragraph (1) applies —
a
if the allowance granted is the same as or is less than the excess of eligible rent over the threshold, the appropriate amount shall be 25 per cent. of that part of the housing benefit qualifying expenditure attributable to such allowance;
b
if the allowance granted is greater than the excess of the eligible rent over the threshold, the appropriate amount shall be 25 per cent. of that part of the housing benefit qualifying expenditure attributable to such allowance which is equal to the excess, and 95 per cent. of that part of the housing benefit qualifying expenditure attributable to the balance.
3
Paragraph (1) shall not apply to an allowance payable by an authority in respect of rents which exceed the threshold —
a
which are registered in respect of a dwelling under Part IV, V or VI of the Rent Act 1977 or Part V, VI or VII of the Rent (Scotland) Act 1984 or which have been determined by a rent assessment committee in respect of a dwelling under Part I of the Housing Act 1988 or Part II of the Housing (Scotland) Act 1988 ; or
b
where the relevant tenancy is one to which, before 15th January 1989, the provisions of sections 56 to 58 of the Housing Act 1980 (assured tenancies) applied; or
c
where the relevant dwelling is situated within the area of a housing action trust established under Part III of the Housing Act 1988 (Housing Action Trust Areas); or
d
where the dwelling is an excluded tenancy by virtue of paragraph 3 or 10 of Schedule 1A to the Housing Benefit Regulations (excluded tenancies); or
e
where an authority applies to a rent officer for a determination to be made under the Rent Officers Order in relation to a dwelling, but the officer is not required to make any determination under that Order.
4
This article shall not apply in a case to which article 8 applies.
Rent officers' determinations
8
1
Where this article applies, in respect of that part of the housing benefit qualifying expenditure which is attributable to allowances granted for the period beginning on the relevant date and ending on the termination date, the appropriate amount, for the purposes of article 4(1)(b)(ii), shall be calculated in accordance with Schedule 6.
2
This article applies where —
a
an authority applies to a rent officer for a determination to be made under the Rent Officers Order in relation to a dwelling; and
b
the officer makes a determination under that Order.
3
This article also applies in a case where —
a
the dwelling (A) is in a hostel; and
b
by virtue of regulation 12A(2) of the Housing Benefit Regulations (requirement to refer to rent officers) an application for a determination in respect of that dwelling (A) is not required because the dwelling is regarded as similar to another dwelling (B) in that hostel in respect of which a determination has been made, and in such a case the determination made in respect of dwelling (B) shall, for the purposes of this article, be treated as if it were a determination in respect of dwelling (A).
4
This article also applies where a rent officer has made a determination in respect of a tenancy of a dwelling and by virtue of paragraph 2 of Schedule 1A to the Housing Benefit Regulations (excluded tenancies) a new determination is not required in respect of another tenancy of the dwelling, and in such a case the determination made shall, for the purposes of this article, be treated as if it were a determination made in respect of that tenancy.
5
Where a determination as to the rent which a landlord might reasonably be expected to obtain in respect of a dwelling is made by a rent assessment committee following a determination made by a rent officer under paragraph 1 of Schedule 1 to the Rent Officers Order, this article shall cease to apply in so far as it relates to a determination made by a rent officer under that paragraph from the date on which the rent assessment committee’s determination takes effect.
6
Where
a
a determination under paragraph 1 of Schedule 1 to the Rent Officers Order has been made by the rent officer, and
b
an application is made to the rent assessment committee and, had that application been made before the reference to the rent officer which led to that determination, the rent officer would, in accordance with article 5(2) of the Rent Officers Order , not have made such a determination, this article shall cease to apply in so far as it relates to that determination under that paragraph from the date of that application, or 1st April 1994, whichever is the later date.
7
Except in a case to which paragraph (3) applies, this article does not apply where an authority is required to apply for a determination in relation to a dwelling during the relevant year under regulation 12A of the Housing Benefit Regulations which a rent officer would be required to make, but the authority fails to apply for that determination and any allowance granted in such a case shall, subject to article 11(4), be deducted from housing benefit qualifying expenditure pursuant to article 2(2)(b).
Additions in respect of homeless and short lease cases
9
1
Subject to paragraphs (4) and (5), where paragraph (3) applies, any part of the housing benefit qualifying expenditure of an authority identified in column (1) of Schedule 7 attributable to any rebate granted in respect of a person whose weekly eligible rent exceeds the threshold specified in relation to that authority in column (2) of that Schedule, then for the purposes of article 4(1)(b)(ii), the appropriate amount in respect of that rebate shall be calculated in accordance with paragraph (2).
2
Where paragraph (1) applies —
a
if the rebate granted is the same as or is less than the amount by which the eligible rent exceeds the threshold, the appropriate amount shall be 25 per cent. of that part of the housing benefit qualifying expenditure attributable to such rebates;
b
if the rebate granted is greater than the amount by which the eligible rent exceeds the threshold, the appropriate amount shall be 25 per cent. of that part of the housing benefit qualifying expenditure attributable to such rebates which is equal to the excess and 95 per cent. of that part of the housing benefit qualifying expenditure attributable to the balance after deducting that excess.
3
This paragraph applies where a rebate is payable by an authority in respect of rents which exceed the threshold, which —
a
a person is required to pay to an authority under section 69(2)(b) of the Housing Act 1985 or section 35(2)(b) of the Housing (Scotland) Act 1987 , as the case may be, for board and lodging accommodation made available to that person;
b
a person is required to pay to an authority under section 69(2)(b) of the Housing Act 1985 or section 35(2)(b) of the Housing (Scotland) Act 1987, as the case may be, for accommodation, which the authority holds on a licence agreement from a landlord, made available to that person;
c
a person is required to pay to an authority for accommodation outside the Housing Revenue Account, which the authority holds on a lease granted for a term not exceeding 3 years, made available to that person.
4
Where, in Scotland —
a
a person is required to pay to an authority for accommodation within the Housing Revenue Account, which the authority holds on a lease granted for a term not exceeding 3 years, made available to that person, and
b
an authority identified in column (1) of Schedule 7, has granted any rebate in respect of such payments,
the amount of any such rebate shall, subject to article 11(4), be deducted from housing benefit qualifying expenditure, pursuant to article 2(2)(c), and the addition, if any, in respect of such rebates, referred to in article 4(1), shall be calculated in accordance with paragraph (5).
5
Where paragraph (4) applies
a
if the rebate granted is in respect of a person whose weekly eligible rent does not exceed the threshold specified in relation to that authority in column (2) of Schedule 7 (“the relevant threshold”), then the addition shall be 95 per cent. of that rebate;
b
if the rebate granted is the same as or is less than the amount by which the eligible rent exceeds the relevant threshold, there shall be no addition, and
c
if the rebate granted is greater than the amount by which the eligible rent exceeds the threshold, there shall be no addition in respect of such part of such rebate which is equal to the excess, but there shall be an addition of 95 per cent. of that part of such rebate attributable to the balance after deducting that excess.
Other additions to housing benefit subsidy
10
1
Subject to paragraphs (8) and (9), the additions referred to in article 4(1) are —
a
where following the loss, destruction or non-receipt, or alleged loss, destruction or non-receipt of original instruments of payment, an authority makes duplicate payments and the original instruments have been or are subsequently encashed, an amount equal to 25 per cent. of the amount of the duplicate payments;
b
subject to paragraphs (2) and (3) where during the relevant year it is discovered that an overpayment of rebate or allowance has been made and an amount is to be deducted under article 11 in relation to that overpayment, an amount equal to —
i
in the case of an overpayment caused by departmental error, 95 per cent. of so much of the overpayment as has not been recovered by the authority;
ii
in the case of a fraudulent overpayment 95 per cent. of the overpayment; or
iii
except where head (i) or (ii) applies, 25 per cent. of the overpayment;
c
where, during the relevant year, it is discovered that an overpayment in respect of which a deduction was made under article 11 of the 1994 Order (other than a deduction under sub-paragraph (1)(g) of that article) was a fraudulent overpayment the difference, if any, between 95 per cent. of any such overpayment and the amount of any housing benefit subsidy that has been paid to that authority in respect of that overpayment.
2
The amount under paragraph (1)(b) shall not include an amount in relation to —
a
an overpayment caused by an error of the authority making the payment, or
b
any technical overpayment.
3
Where an overpayment is caused by departmental error, but some or all of that overpayment is recovered by the appropriate authority, no addition shall be applicable to the authority in respect of the amount so recovered.
4
In paragraphs (1)(b)(i) and (3) and in article 11(1)(e) “overpayment caused by departmental error” means an overpayment caused by a mistake made or something done or omitted to be done by an officer of the Department of Social Security or the Department of Employment, acting as such, or a decision of an adjudication officer, social security appeal tribunal or Social Security Commissioner appointed in accordance with sections 38(1), 40(1), 51(1) and 52(1) of the Act (appointment of adjudication officers, chairmen and members of social security appeal tribunals and Commissioners) where the claimant, a person acting on his behalf or any other person to whom the payment is made, did not cause or materially contribute to that mistake, act or omission.
5
In paragraphs (1)(b)(ii) and (c), in article 11(1)(f) and in paragraph 1 of Schedule 8 “fraudulent overpayment” means an overpayment in respect of a period falling wholly or partly after 31st March 1993 and which —
a
is so classified by an officer of the authority, designated for that purpose by the authority, after that date; and
b
occurs as a result of the payment of a rebate or allowance arising in consequence of —
i
a breach of section 112 of the Act (false representations for obtaining benefit), or
ii
knowingly failing to report a relevant change of circumstances, contrary to the requirements of regulation 75 of the Housing Benefit Regulations (duty to notify change of circumstances), with intent to obtain or retain such a rebate or allowance for himself or another.
6
In paragraph (2)(a) “overpayment caused by an error of the authority making the payment” means an overpayment caused by a mistake made or something done or omitted to be done by that authority, where the claimant, a person acting on his behalf or any other person to whom the payment is made did not cause or materially contribute to that mistake, act or omission.
7
In paragraph (2)(b) “technical overpayment” means that part of an overpayment which occurs as a result of a rebate being granted in advance and
a
a change in circumstances reduces or eliminates entitlement to that rebate; or
b
the authority subsequently identifies a recoverable overpayment which does not arise from a change in circumstances,
but shall not include any part of that overpayment occurring before the benefit week following the week in which the change is disclosed to or identified by the authority.
8
Except for paragraphs (1)(b)(ii), (1)(c) and (5), this article shall not apply to that part of any rebate or allowance in respect of a case to which paragraph (15) of regulation 72 of the Housing Benefit Regulations (time and manner in which claims are to be made) applies.
9
Any reference in this article to an overpayment shall not include any rebate or allowances for any period overrun or other period immediately following expiry of the specified period determined under regulation 66 of the Housing Benefit Regulations except for SO much of any rebate or allowance to which the claimant would not have been entitled had a claim for that period been duly made and determined.
Deductions to be made in calculating housing benefit subsidy in respect of rebates or allowances
11
1
The deductions referred to in article 2(2)(d) are, subject to paragraph (4), to be of the following amounts where —
a
subject to paragraphs (2) and (3), a tenant of an authority, who is in receipt of a rent rebate, while continuing to occupy, or when entering into occupation of, a dwelling as his home, either under his existing tenancy agreement or by entering into a new tenancy agreement —
i
is during, or was at any time prior to, the relevant year able to choose whether or not to be provided with any services, facilities or rights (“improvements”) and chooses or chose to be so provided; or
ii
is during, or was at any time prior to, the relevant year able to choose either to be provided with any improvmenets or, whether or not in return for ari award or grant from the authority, to provide such improvements for himself; or
iii
would be able during, or would have been able at any time prior to, the relevant year to exercise the choice set out in sub-paragraph (i) or (ii) of this paragraph if he were not or had not at that time been in receipt of a rent rebate,
the amounts attributable during the relevant year to such improvements whether they are or would be expressed as part of the sum fixed as rent, otherwise reserved as rent or expressed as an award or grant from the authority;
b
during the relevant year a person becomes entitled to a rent-free period which has not been, or does not fall to be, taken into account in calculating the amount of rent rebate to which he is entitled under the Housing Benefit Regulations, the amount of rebate which is or was payable to him in respect of such rent free period;
c
during the relevant year an award in the form of a payment of money or monies worth, a credit to the person’s rent account or in some other form is made by an authority to one of its tenants in receipt of rent rebate, whether or not the person is immediately entitled to the award, the amount or value of the award, but no such deduction shall be made in respect of an award —
i
made to a tenant for a reason unrelated to the fact that he is a tenant;
ii
made under a statutory obligation;
iii
made under section 137 of the Local Government Act 1972 or section 83 of the Local Government (Scotland) Act 1973 (power of local authorities to incur expenditure for certain purposes not otherwise authorised);
iv
except where sub-paragraph (a)(ii) applies, made as reasonable compensation for reasonable repairs or redecoration the tenant has, or has caused to be, carried out whether for payment or not and which the authority would otherwise have carried out or have been required to carry out; or
v
of a reasonable amount made as compensation for loss, damage or inconvenience of a kind which occurs only exceptionally suffered by the tenant by virtue of his occupation of his home;
d
during the relevant year the weekly amount of rebate or allowance is increased pursuant to paragraph (2) of regulation 61 of the Housing Benefit Regulations , the amount of such increase;
e
during the relevant year an amount is recovered in relation to an overpayment of a rebate or allowance which was caused by departmental error, within the meaning ofarticle 10(4), the amount so recovered where the overpayment had occurred and been discovered in a year earlier than the relevant year;
f
during the relevant year a fraudulent overpayment, within the meaning of article 10(5), is identified, the amount of the overpayment, but only to the extent that the amount of overpayment or any part of it has not been deducted from qualifying expenditure under article 4 of the 1994 Order;
g
subject to sub-paragraphs (e) and (f) of paragraph 1(1), during the relevant year it is discovered that an overpayment of rebate or allowance has been made, the amount of such overpayment, but only to the extent that —
i
the amount of overpayment or any part of it has not been deducted from qualifying expenditure under article 3 of the Housing Benefit (Subsidy) Order 1989 or of the Housing Benefit (Subsidy) Order 1990 or under article 4 of respectively the 199 1 Order, the 1992 Order, the 1993 Order or the 1994 Order, as the case may be; and
ii
the amount of the overpayment or any part of it does not include an amount to which paragraph (15) of regulation 72 of the Housing Benefit Regulations or paragraph (7) of article 2 of the Community Charge Benefits (Transitional) Order 1989 , or as the case may be, paragraph (18) of regulation 59 of the Housing Benefit (Community Charge Rebates) (Scotland) Regulations 198837 (time and manner in which claims are to be made) applied;
h
during the relevant year any instrument of payment issued by an authority during that year is returned to that authority without being presented for payment or is found by that authority to have passed its date of validity without being presented for payment, the amount of any such instrument
2
No deduction shall be made under paragraph l(a) in a case where the eligible rent for a tenant has been increased in a case to which that sub-paragraph would apply but —
a
any such services, facilities or rights (“improvements”) —
i
relate solely to the physical needs of the property in question or the needs of that tenant; and
ii
the increased rent in relation to such improvements is reasonable;
b
the tenant was eligible whether or not he was a beneficiary, and
c
the authority has not let properties, to which they intend to make improvements, either in the relevant year or in the two years preceding that year, solely or largely to beneficiaries.
3
In paragraph (2) “beneficiary” has the meaning it is given for the purposes of article 6 by paragraph (7) of that article.
4
Where in relation to any amount of a rebate or allowance a deduction falls to be made under two or more of article 8(7), article 9(4), paragraph 6 of Schedule 6, or the sub-paragraphs of paragraph (1), as the case may be, only the higher or highest, or, where the amounts are equal, only one amount, shall be deducted.
Deduction from housing benefit subsidy
12
Where during the relevant year it is found by an authority that any instrument of payment issued by it during the period of 6 years ending on 31st March 1994 has been returned to that authority without having been presented for payment or has passed its date of validity without having been presented for payment, the deduction referred to in article 4(1) shall be the amount of any housing benefit subsidy that has been paid to that authority in respect of any such instrument.
Additions to and deductions from housing benefit subsidy in respect of benefits savings
13
1
Where this article applies, the addition to or, as the case may be, deduction from housing benefit subsidy referred to in article 4(1) shall be calculated in accordance with Part II of Schedule 8.
2
This article applies in the case of an authority to which paragraph 2 of Schedule 8 applies and in such a case the addition shall be calculated in accordance with that paragraph.
3
This article also applies in the case of an authority to which paragraph 4 of Schedule 8 applies and in such a case the deduction shall be calculated in accordance with that paragraph.
PART III
COUNCIL TAX BENEFIT SUBSIDY
Interpretation of Part III
14
1
In this Part of this Order, unless the context otherwise requires —
“appropriate authority” means, in the case of an authority to which section 139(2) of the Act (arrangement for benefits) refers or, in the case of an authority in Scotland, a levying authority to which section 139(3) of the Act refers;
“council tax benefit subsidy” means subsidy under section 140 of the Act;
“the Community Charge Benefits Regulations ” means the Community Charge Benefits (General) Regulations 1989 ;
“the Council Tax Benefit Regulations ” means the Council Tax Benefit (General) regulations 1992 ;
and other expressions used in this Order and in the Community Charge Benefits Regulations or the Council Tax Benefit Regulations, as the case may be, shall have the same meanings in this Order as in those Regulations.
2
In this part of this Order “council tax benefit qualifying expenditure” means the total of council tax benefit and community charge benefits granted by the appropriate authority during the relevant year, less —
a
the deductions specified in article 19; and
b
where, under subsection (6) of section 139 of the Act (arrangements council tax benefit), the appropriate authority has modified any part of the scheme administered by it, any amount by which the total of the council and community charge benefits which it granted under the scheme during the relevant year exceeds the total of those which it would have granted if the scheme had not been so modified.
Amount of council tax benefit subsidy
15
The amount of an appropriate authority’s council tax benefit subsidy for the relevant Year —
a
for the purposes of section 140(2) of the Act (subsidy in respect of council tax benefit) shall be the amount or total of the amounts calculated in accordance with article 16;
b
for the purposes of section 140(5) of the Act (subsidy in respect of the costs of administering council tax benefit) may include an additional sum in respect of the costs of administering council tax benefit calculated in accordance with Schedules 1 and 2.
Council tax benefit
16
1
Subject to paragraph (2) for the purposes of section 140(2) of the Act, an appropriate authority’s council tax benefit subsidy for the relevant year shall be —
a
in the case of an appropriate authority to which article 17 does not apply, 95 per cent. of its council tax benefit qualifying expenditure;
b
in the case of an appropriate authority to which that article is relevant an amount equal to the aggregate of —
i
95 per cent. of so much of its council tax benefit qualifying expenditure as remains after deducting the amount of expenditure attributable to the council tax benefit to which that article applies; plus
ii
the appropriate amount calculated in respect of the council tax benefit under that article,
plus, in each case, the additions, where applicable, under articles 18 and 21(2), less, in each case, the deductions, where applicable, under articles 20 and 21(3).
2
Where, during the relevant year there has been a period overrun in respect of council tax benefit, that authority’s council tax benefit subsidy for that year shall be adjusted by deducting from the subsidy otherwise due under this article an amount equal to the percentage, as calculated in accordance with paragraph 4 of Schedule 4, of the council tax benefit qualifying expenditure for that authority.
Backdated benefit
17
1
Subject to paragraph (2), where —
a
during the relevant year an appropriate authority has —
i
under paragraph (18) of regulation 60 of the Community Charge Benefits Regulations (time and manner in which claims are to be made), treated any claim for a community charge benefit as made on a day earlier than that on which it is made; or
ii
under paragraph (16) of regulation 62 of the Council Tax Benefit Regulations (time and manner in which claims are to be made), treated any claim for council tax benefit as made on a day earlier than that on which it is made; and
b
any part of that appropriate authority’s council tax benefit qualifying expenditure is attributable to such earlier period,
for the purposes of article 16(1)(b)(ii), the appropriate amount for the relevant year in respect of such part shall be 50 per cent. of the council tax benefit qualifying expenditure so attributable.
2
This article shall not apply in a case to which article 18(1)(b)(ii) applies.
Additions to council tax benefit subsidy
18
1
Subject to paragraphs (8) and (9), the additions referred to in article 16 are —
a
where, following the loss, destruction or non-receipt, or alleged loss, destruction or non-receipt of original instruments of payment, an appropriate authority makes duplicate payments and the original instruments have been or are subsequently encashed. an amount equal to 35 per cent. of the amount of the duplicate payments;
b
subject to paragraphs (2) and (3) where it is discovered by an appropriate authority, during the relevant year, that excess benefits have been allowed and an amount is to be deducted under article 20 in relation to those excess benefits, an amount equal to —
i
where the excess benefits are allowed in consequence of a departmental error, 95 per cent. of that part of the excess benefits which have not been recovered by the appropriate authority;
ii
where fraudulent excess benefits are allowed 95 per cent. of the excess benefits; or
iii
except where head (i) or (ii) applies, 25 per cent. of the excess benefits;
c
where, during the relevant year, it is discovered that excess benefit in respect of which a deduction was made under article 19 of the 1994 Order (other than a deduction under sub-paragraph (1)(c) of that article) was fraudulent excess benefit, the difference, if any, between 95 per cent. of any such excess benefit and the amount of any council tax benefit subsidy that has been paid to that authority in respect of that excess benefit.
2
The amount under paragraph (1)(b) shall not include an amount in relation to —
a
any excess benefit allowed in consequence of an error of the appropriate authority making the payment;
b
any technical excess benefit, or
c
any excess benefit allowed and discovered in the relevant year, as a result of a reduction in the amount of council tax a person is liable to pay.
3
Where excess benefits are allowed in consequence of departmental error, but some or all of that excess benefit is recovered by the appropriate authority, no addition shall be applicable to that authority in respect of the amount so recovered.
4
In paragraph (2)(a) “excess benefit allowed in consequence of an error of the appropriate authority making the payment” means excess benefits in consequence of a mistake made or something done or omitted to be done by the appropriate authority where the claimant, a person acting on his behalf or any other person to whom the payment is made, did not cause or materially contribute to that mistake, act or omission.
5
In paragraph (1)(b)(ii), in paragraph (3) and in article 19(1)(b) “excess benefits allowed in consequence of departmental error” means excess benefits in consequence of a mistake made or something done or omitted to be done by an officer of the Department of Social Security or the Department of Employment acting as such, or a decision of an adjudication officer, social security appeal tribunal or Social Security Commissioner appointed in accordance with sections 38(1), 40(1), 51(1) and 52(1) of the Act (appointment of adjudication officers, chairmen and members of social security appeal tribunals and Commissioners) where the claimant, a person acting on his behalf or any other person to whom the payment is made did not cause or materially contribute to that mistake, act or omission.
6
In paragraph (2)(b) “technical excess benefit” means that part of excess benefits which occurs as a result of benefits being allowed in advance and
a
a change of circumstances reducing or eliminating entitlement to those benefits; or
b
the authority subsequently identifies recoverable excess benefits which arise otherwise than from a change in circumstances,
but shall not include any part of those excess benefits occurring before the benefit week next following the week in which the change is disclosed to the appropriate authority.
7
In paragraph (1)(b)(ii) and (c), in article 19(1)(c) and in paragraph 1 of Schedule 8 “fraudulent excess benefit” means excess benefit in respect of a period falling wholly or partly after 31st March 1993 and which —
a
is so classified by an officer of the authority, designated for that purpose by the authority, after that date; and
b
occurs as a result of the award or continuation of benefit arising in consequence of —
i
a breach of section 112 of the Act (false representations for obtaining benefit), or
ii
knowingly failing to report a relevant change of circumstances, contrary to the requirements of regulation 63 of the Community Charge Benefits Regulations or, as the case may be, of regulation 65 of the Council Tax Benefit Regulations (duty to notify change of circumstances), with intent to obtain or retain such benefit.
8
Except for paragraphs (1)(b)(ii), (1)(c) and (7), this article shall not apply to an award of benefit to which paragraph (18) of regulation 60 of the Community Charge Benefits Regulations or paragraph (16) of regulation 62 of the Council Tax Benefit Regulations (time and manner in which claims are to be made), as the case may be, applies.
9
Any reference in this article to excess benefits shall not include any council tax benefit for any period overrun or any period immediately following expiry of the specified period determined under regulation 57 of the Council Tax Benefit Regulations (benefit period) except for so much of any such benefit to which the claimant would not have been entitled had a claim for that period been duly made and determined.
Deductions to be made in calculating subsidy in respect of council tax benefit
19
1
The deductions referred to in article 14(2) are, subject to paragraph (2), of the following amounts, namely where —
a
an appropriate authority has by virtue of regulation 58 of the Community Charge Benefits Regulations , regulation 51(5), 54(4) or 60 of the Council Tax Benefit Regulations (increases of weekly amounts for exceptional circumstances) increased benefit in exceptional circumstances, the amount attributable to that increase;
b
during the relevant year an amount is recovered in relation to excess community charge benefit or excess council tax benefit, as the case may be, which was allowed in consequence of departmental error, within the meaning of article 18(5), and where the excess benefit had occurred and been discovered in one or more of the years ending 31st March 1991, 31st March 1992. 31st March 1993 or 31st March 1994, as the case may be, the amount so recovered;
c
during the relevant year fraudulent excess benefit, within the meaning of article 18(7), is identified, the amount so identified, but only to the extent that the amount of the excess benefits or any part of it has not been deducted from council tax benefit qualifying expenditure under article 19 of the 1994 Order;
d
subject to sub-paragraphs (b) and (c) of this paragraph, during the relevant year it is discovered by an appropriate authority that excess benefits have been allowed, the amount of the excess benefits, but only to the extent that —
i
the amount of the excess benefits or any part of it has not been deducted from community charge benefit qualifying expenditure under article 15 of the 1991 Order or article 16 of the 1992 Order or the 1993 Order, or from council tax benefit qualifying expenditure under article 19 of the 1994 Order, as the case may be; and
ii
the amount of the excess benefits or any part of it does not include an amount payable pursuant to either paragraph (18) of regulation 60 of the Community Charge Benefits Regulations or paragraph (16) of regulation 62 of the Council Tax Benefit Regulations (time and manner in which claims are to be made);
e
during the relevant year any instrument of payment which was issued by an authority during that year is returned to that authority without being presented for payment or is found by that authority to have passed its date of validity without being presented for payment, the amount of any such instrument.
2
Where in relation to any amount of benefit a deduction falls to be made under two or more sub-paragraphs of paragraph (1), only the higher or highest or, where the amounts are equal, only one amount shall be deducted.
Deduction from council tax benefit subsidy
20
Where during the relevant year it is found by an appropriate authority that any instrument of payment issued by it during the period of 4 years ending on 31 st March 1994 has been returned to that authority without having been presented for payment or has passed its date of validity without having been presented for payment, the deduction referred to in article 16(1) shall be the amount of any council tax benefit subsidy that has been paid to that authority in respect of any such instrument.
Additions to and deductions from council tax benefit subsidy in respect of benefits savings
21
1
Where this article applies, the addition to or, as the case may be, deduction from council tax benefit subsidy referred to in article 16(1) shall be calculated in accordance with Part III of Schedule 8.
2
This article applies in the case of an appropriate authority to which paragraph 5 of Schedule 8 applies and in such a case the addition shall be calculated in accordance with that paragraph.
3
This article also applies in the case of an appropriate authority to which paragraph 7 of Schedule 8 applies and in such a case the deduction shall be calculated in accordance with that paragraph.
Signed by authority of the Secretary of State for Social Security. 23rd March 1995
Roger Evans
Parliamentary Under-Secretary of State,
Department of Social Security
We consent,
Timothy Wood
Derek Conway
Two of the Lords Commissioners of Her Majesty’s Treasury
23rd March 1995


text:
Citation and Commencement
1
1
These Regulations may be cited as the Insurance Companies (Amendment) Regulations 1995 and shall come into force on 31st December 1995.
2
In these Regulations, “the 1994 Regulations ” means the Insurance Companies Regulations 1994 .
Interpretation: Part VIII
2
1
Paragraph (1) of regulation 44 of the 1994 Regulations (interpretation: Part VIII) shall be amended as follows.
2
Before the definition of “approved counterparty” insert —
“amortised value” means the amortised value as determined in accordance with generally accepted accounting concepts, bases and policies or other generally accepted methods appropriate to insurance companies;
.
3
In the definition of “approved counterparty”, delete “or” from the end of sub-paragraph (b) and at the end insert
or
d
in respect of a transaction involving a new issue of securities which are to be listed, the issuer or an approved investment firm acting on behalf of the issuer;
.
4
After the definition of “building society” insert —
“collective investment scheme” has the meaning given in section 75 of the Financial Services Act 1986 ;
.
5
After the definition of “contract for differences” insert —
“counterparty” has the meaning set out in Schedule 12 to these Regulations;
.
6
Omit the definition of “debenture” and after the definition of “debt” insert —
“debt security” includes bonds, notes, debentures and debenture stock;
“deferred acquisition costs” means those items shown at GII under the heading “Assets” set out in paragraph 9 of Schedule 9A to the Companies Act 1985 ;
.
7
At the end of the definition of “derivative contract” insert the words “and includes a contract under which the amount payable by either party is calculated by reference to the amortised value of any property”.
8
After the definition of “equity share” insert —
“equivalent securities” means securities issued by the same issuer being of an identical type and having the same nominal value, description and amount;
.
9
In the definition of “general business amount”, for the words “regulation 57(9) below” substitute “Schedule 12 to these Regulations”.
10
Omit the definition of “insurance liabilities”.
11
After the definition of “intermediary”, insert —
“issuer” in respect of a collective investment scheme, means the manager or operator of the scheme and in respect of an interest in a limited partnership, means the partnership;
.
12
For the definition of “listed” substitute —
“listed”, in relation to an investment, means that —
there has been granted and not withdrawn a listing in respect of that investment on any stock exchange in an EEA State which is a stock exchange within the law of that EEA State; or
facilities for dealing in that investment have been granted on a regulated market;
.
13
Omit the definition of “middle market quotation” and insert —
“market value” means the market value as determined in accordance with generally accepted accounting concepts, bases and policies or other generally accepted methods appropriate to insurance companies;
14
Omit the definition of “price earnings ratio”.
15
In the definition of “regulated institution”, at the beginning of sub-paragraph (a) insert “an insurance company which is either;”.
16
In the definition of “securities”, for the word “debentures” substitute the words “debt securities”.
17
Omit the definition of “stock lending transaction”.
3
For paragraph (3) of regulation 44, substitute —
3
For the purposes of these Regulations, a debt owed to (or an obligation to be fulfilled for the benefit of) an insurance company shall be regarded as being secured only to the extent that it is —
a
secured by —
i
a letter of credit established with an approved credit institution; or
ii
a guarantee provided by an approved credit institution,
and the lower of the amount of the letter of credit or guarantee and the amount of the debt (or the value of the obligation) when added to any other exposure of the insurance company to the approved credit institution does not exceed the permitted counterparty exposure limit (as determined by regulation 57 of, and Schedule 12 to, these Regulations); or —
b
secured by assets for the valuation of which provision is made in this Part of these Regulations and —
i
the value of such assets (after deducting reasonable expenses of sale and the amount of any other debt or obligation secured thereon having priority to or ranking equally with the debt or obligation) is sufficient to enable the debt or obligation to be discharged in full; and
ii
the value of the assets when aggregated with the insurance company’s exposure to assets of the same description does not exceed the permitted exposure limit for assets of that description (as defined in regulation 57 of, and Schedule 12, to these Regulations).
Application: Part VIII
4
1
Regulation 45 of the 1994 Regulations (application: Part VIII) shall be amended as follows.
2
In paragraph (2), omit the words “in compliance with section 35A of the Act”.
3
For paragraph (4), substitute —
4
Where in all the circumstances of the case it appears that the value of any asset is of a lesser value than the amount calculated in accordance with this Part of these Regulations, such lesser value shall be the value of the asset.
4
After paragraph (7), insert —
8
Where an insurance company has entered into a contract for the conversion of currency which satisfies the conditions set out in paragraph (9) below, then for any of the purposes for which this Part of these Regulations applies, the company shall treat the conversion as having been made on the relevant date.
9
The conditions referred to in paragraph (8) above are that —
a
either —
i
the contract provides for the conversion into another currency of an amount representing the sale of an asset which has, on the relevant date, been sold but not delivered, or
ii
the contract provides for the purchase of currency for the purpose of settling the purchase of an asset which has, on the relevant date, been purchased but not delivered;
b
the conversion is to take place during a period which is —
i
where the contract is in connection with the delivery of a listed security, a period commencing on the date of the contract and extending for the usual period of settlement as laid down by the rules of the relevant stock exchange or regulated market, or
ii
where the contract is in connection with the delivery of any other asset, a period commencing on the date of the contract and extending for twenty working days thereafter; and
c
the contract is listed or has been entered into with an approved counterparty.
Assets sold to or purchased from an approved credit institution or an approved investment firm subject to an agreement for resale or repurchase
5
After regulation 47 of the 1994 Regulations, insert —
Assets sold to or purchased from an approved credit institution or an approved investment firm subject to an agreement for resale or repurchase.
47A
1
Where an insurance company has sold securities to or purchased securities from an approved credit institution or an approved investment firm and such sale or purchase was made subject to an agreement that the approved credit institution or approved investment firm would, either on demand by the insurance company or within six months of such sale or purchase, subsequently sell to or purchase from the insurance company equivalent securities, then if at the relevant date such subsequent sale or purchase has not taken place and the conditions specified in paragraphs (2) and either (3) or (4) below as appropriate are satisfied, the insurance company —
a
shall value —
i
securities sold by it under such agreement as if such securities had been retained by it; and
ii
assets provided by it as consideration for the purchase of securities under such agreement as if such consideration had not been provided by it; and
b
not ascribe a value to —
i
any consideration received for the sale of securities under such agreement (or any assets purchased by it with such consideration) up to the limit of the value of the securities sold; or
ii
any securities purchased by it under such agreement (or any assets purchased with the proceeds of the sale of any such securities) up to the limit of the consideration (valued in accordance with generally accepted accounting concepts, bases and policies or other generally accepted methods appropriate to insurance companies) provided by it.
2
The condition specified in this paragraph is that where at any time after the sale or purchase of securities by the insurance company under an agreement described in paragraph (1) above either —
a
the amount of the consideration received by the insurance company for the sale of the securities fell below the value of the securities sold by it; or
b
the value of the securities purchased by the insurance company fell below the value of the consideration provided by it
by more than 2½ per cent. of the value of the securities sold or purchased, as the case may be, then the insurance company demanded additional consideration whose amount was equal to the shortfall and such demand was complied with before the end of the working day next following the day on which such shortfall occurred.
3
The conditions specified in this paragraph are that if the insurance company purchases securities from an approved credit institution or an approved investment firm and the consideration provided by the insurance company is other than by way of sale of securities —
a
the securities purchased are —
i
approved securities;
ii
listed securities; or
iii
securities issued by an approved credit institution; and
b
the securities purchased do not include —
i
listed securities issued by the same counterparty whose aggregate value amounts to more than 15 per cent of the value of the securities purchased; or
ii
in the event that the condition in sub-paragraph (b)(i) above is not satisfied, securities whose value when aggregated with the insurance company’s existing exposure to assets of the same description or to the same counterparty would cause the company to exceed the appropriate permitted asset exposure limit or permitted counterparty exposure limit as determined in accordance with regulation 57 of, and Schedule 12 to, these Regulations.
4
The conditions specified in this paragraph are that if the insurance company sells securities to an approved credit institution or an approved investment firm —
a
the consideration provided by the approved credit institution or approved investment firm is —
i
cash;
ii
approved securities;
iii
listed securities;
iv
securities issued by an approved credit institution;
v
a Talisman short term certificate;
vi
a charge over assets set out in sub-paragraphs (i) to (iv) above;
vii
a letter of credit established with an approved credit institution; or
viii
a guarantee provided by an approved credit institution; and
b
the consideration does not include —
i
except to the extent that the condition in sub-paragraph (b)(ii) below is satisfied, consideration whose amount when aggregated with the insurance company’s existing exposure to assets of the appropriate description or to the relevant counterparty would cause the company to exceed the appropriate permitted asset exposure limit or permitted counterparty exposure limit as determined in accordance with regulation 57 of, and Schedule 12 to, these Regulations; or
ii
consideration, more than 15 per cent. of the aggregate amount of which takes the form of securities (other than approved securities) issued by, letters of credit established with, guarantees provided by, cash deposited with, a charge over cash deposited with or a charge over securities issued by, the same counterparty; and —
c
the consideration to be provided by the insurance company for the subsequent purchase of equivalent securities is —
i
where the consideration for the original purchase by the approved credit institution or approved investment firm was (wholly or in part) cash, cash denominated in the same currency, and
ii
where the consideration was (wholly or in part) securities, securities equivalent to the securities provided by way of consideration.
5
For the purposes of paragraph (4) above, the amount of any consideration shall be —
a
where the consideration provided is a letter of credit established with an approved credit institution, the lower of the amount made available under the letter of credit and the value of the assets sold;
b
where the consideration is a guarantee provided by an approved credit institution, the lower of the amount of the guarantee and the value of the assets sold;
c
where the consideration takes the form of assets of the types mentioned in paragraph (4)(a)(i) to (iv) above, or a charge over such assets, the value of the assets as determined in accordance with this Part of these Regulations; or
d
where the consideration takes the form of a Talisman short term certificate, the value of the securities represented by that certificate.
6
Where an insurance company has entered into a number of agreements described in paragraph (1) above, for the purposes of paragraphs (3) and (4) of this regulation —
a
any or all agreements under which the subsequent sale or purchase has not taken place at the relevant date may be treated as one agreement; and
b
in such case, the 15 per cent. limits in paragraphs (3)(b)(i) above and (4)(b)(ii) above shall be calculated by reference to the aggregate of the value of the securities purchased under paragraph (3) above and the amount of any consideration under paragraph (4) above.
Debts and other rights
6
1
Regulation 48 of the 1994 Regulations (debts and other rights) shall be amended as follows.
2
For paragraph (5), substitute —
5
Subject to paragraph 5A below, the value of any rights of the company under a contract of reinsurance to which it is a party shall be the amount which can reasonably be expected to be recovered in respect of those rights.
3
After that paragraph insert —
5A
Paragraph (5) above shall not apply to —
a
rights under a contract of reinsurance in respect of long term business except to the extent that debts are due under such contracts; or
b
debts to which regulation 46(4) applies which are due or to become due.
4
In paragraph (6)(d), omit the words “or (8) below”.
5
For paragraph (8), substitute —
8
In the case of general business carried on by a company, the value of any subrogation rights of the company shall be the amount which can reasonably be expected to be recovered by virtue of the exercise of those rights.
6
For paragraph (10), substitute —
10
This regulation shall not apply to —
a
any rights arising in respect of a derivative contract or a contract or asset having the effect of a derivative contract; or
b
rights in respect of investments falling within regulation 47 above or 51 or 52 below
save for an unconditional right to receive a specified amount.
7
Omit paragraph (11).
Securities and beneficial interests in limited partnerships (substitution for regulation concerning unlisted securities)
7
For regulation 51 of the 1994 Regulations (unlisted securities), substitute —
Securities and beneficial interests in limited partnerships
51
1
This regulation shall apply to the valuation of investments comprising securities other than securities for the valuation of which provision is made in regulation 47 above or 52 below and beneficial interests in a limited partnership, and for the purposes of paragraph (5) below investments includes loans.
2
Subject to paragraphs (4) and (5) below and regulation 56 below, the value of an investment to which this regulation applies shall be —
a
where the investment is transferable and paragraph (3) below does not apply, the market value; and
b
where the investment is transferable and paragraph (3) below applies, the lower of —
i
the market value, and
ii
the amount which would reasonably be expected to be received by way of consideration for an assignment or transfer of the investment at a date not later than twelve months after the relevant date, it being assumed that negotiations for the assignment or transfer commenced on the relevant date and the assignment or transfer was made other than to the issuer or to an associate or an associated company of the issuer or of the insurance company; and
c
where the investment is not transferable —
i
the amount payable on redemption on the relevant date or the most recent date before the relevant date on which the issuer of the investment could have been required to redeem the investment; or
ii
where the investment cannot be redeemed, the amount which would reasonably be paid by way of compensation for the surrender of the interest in the investment.
3
This paragraph applies where it is not reasonable to assume that, had negotiations for the assignment or transfer of the investment commenced not more than seven working days before the relevant date, the investment could have been assigned or transferred on the relevant date for an amount not less than 97½ per cent. of the market value other than to the issuer or to an associate or associated company of the issuer or of the insurance company.
4
Paragraph (3) above shall be taken not to apply if it applies by reason only that —
a
the listing of the investment has been temporarily suspended following receipt of price sensitive information by the stock exchange on which the investment is listed or the regulated market on which facilities for dealing have been granted; or
b
the extent of the holding would prevent an orderly disposal of the investment for an amount not greater than 97½ per cent. of the market value.
5
Where an insurance company has made more than one unlisted investment (other than a number of investments exclusively comprising loans) and the value of such investments when taken together is greater than the aggregate of the values of each investment valued separately, then such higher value may be ascribed to the investments if it is reasonable to assume that none of the investments would be assigned or transferred separately.
Beneficial interests in collective investment schemes (substitution for regulation concerning unit trusts)
8
For regulation 52 of the 1994 Regulations (unit trusts), substitute —
Beneficial interests in collective investment schemes
52
The value of any holding of units, or other beneficial interest, in a collective investment scheme shall be, in the case of —
a
a scheme falling within Council Directive 85/611/ EEC of 20 December 1985 on the co-ordination of laws, regulations and administrative provisions relating to undertakings for collective investments in transferable securities;
b
an authorised unit trust scheme or a recognised scheme within the meaning of the Financial Services Act 1986 (not falling within sub-paragraph (a) above); or
c
any other collective investment scheme where —
i
the scheme does not employ derivative contracts unless they are contracts to which regulation 55 below applies; and
ii
the scheme does not employ contracts or assets having the effect of derivative contracts unless they have the effect of derivative contracts to which regulation 55 below applies; and
iii
the property of the scheme does not include assets other than those for the valuation of which provision is made in this Part of these Regulations; and
iv
the issuer could have been required to purchase the units or other beneficial interest not more than one month before the relevant date,
the price at which the issuer would have purchased the holding of units or other beneficial interest on the relevant date or the most recent date before the relevant date on which it could have been required to make such a purchase.
Deferred acquisition costs (substitution for regulation concerning listed investments)
9
For regulation 53 of the 1994 Regulations (listed investments), substitute —
Deferred acquisition costs
53
In the case of general business, the value of deferred acquisition costs shall be the value as determined in accordance with generally accepted accounting concepts, bases and policies or other generally accepted methods appropriate to insurance companies.
Derivative contracts
10
For regulation 55 of the 1994 Regulations, substitute —
Derivative contracts
55
1
The value of rights under a derivative contract to which this regulation applies shall be —
a
in the case of a listed derivative contract, the market value; and
b
in the case of an unlisted derivative contract, the amount which would reasonably be paid by way of consideration for closing out that contract
in either case taking into account the market value of any assets which at the relevant date have been transferred to or for the benefit of the company in pursuance of a condition in that contract or a related contract.
2
This regulation applies to an approved derivative contract which is covered and —
a
which is held in connection with a contract or asset of the type described in paragraph (3) below for the purposes of reduction of investment risks or efficient portfolio management; or
b
which has the effect of an approved derivative contract held in connection with a contract or asset of the type mentioned in paragraph (3) below for such purposes.
3
The contact or asset described in this paragraph shall be either —
a
an approved derivative contract or a contract or asset having the effect of an approved derivative contract either of which, when taken together with the approved derivative contract the rights under which are being valued in accordance with this regulation, would have the effect that the company either holds an asset for the valuation of which provision is made in this Part of these Regulations or holds an approved derivative contract in connection with such an asset; or
b
an asset for the valuation of which provision is made in this Part of these Regulations, being neither a derivative contract nor a contract or asset having the effect of a derivative contract.
4
For the purposes of this regulation an approved derivative contract is covered if it does not require a significant provision to be made in respect of it pursuant to regulation 61 below.
5
For the purposes of determining in accordance with paragraph (4) above whether a required provision is significant, regard shall be had to the obligations of the company under the contract and the volatility of the assets identified by the company as being suitable to cover such obligations, and the required provision in respect of any one derivative contract shall be deemed to be significant if —
a
the aggregate provision required in respect of all contracts having a similar effect is significant; or
b
the aggregate provision required in respect of all contracts with which it is connected is significant.
6
In this regulation “approved derivative contract” means a derivative contract which —
a
either is listed or has been entered into with an approved counterparty; and
b
the insurance company reasonably believes may be readily closed out; and
c
is either a contract for differences to which paragraph (7) below applies or a futures contract or an option to either of which paragraph (8) below applies.
7
This paragraph applies to —
a
a contract for differences under which the amount payable by either party is calculated solely by reference to fluctuations in any of the following, namely —
i
the value of an asset for the valuation of which provision is made in this Part of these Regulations; or
ii
the amount of income from such an asset over a defined period; or
iii
an index of such assets, being an index in respect of which a derivative contract is listed; or
iv
a national index of retail prices published by or under the authority of a government of a state belonging to Zone A as defined in Council Directive 89/647/EEC of 18 December 1989 on a solvency ratio for credit institutions;
or an arithmetic average thereof, and —
b
a contract under which the amount payable by either party is calculated by reference to the difference between the market value and the amortised value of any asset for the valuation of which provision is made in this Part of these Regulations.
8
This paragraph applies to a futures contract or an option which in either case provides for the acquisition or disposal of assets for the valuation of all of which provision is made in this Part of these Regulations at a price which is determined by one or more of the following methods —
a
for each date on which the contract may be completed or the option exercised, the price is a fixed amount under the terms of the contract or option;
b
it is determined by reference to the market value or the amortised value of an asset for the valuation of which provision is made in this Part of these Regulations or the amount of income over a defined period from such an asset;
c
it is determined by reference to an index of the kind mentioned in paragraph 7(iii) or (iv) above.
Contracts and assets having the effect of derivative contracts (substitution for regulation concerning other assets)
11
For regulation 56 of the 1994 Regulations (other assets), substitute —
Contracts and assets having the effect of derivative contracts
56
1
Subject to paragraph (3) below, for the purposes of this Part of these Regulations, a contract has the effect of a derivative contract if it is a contract (other than a derivative contract) which provides whether upon the exercise of a right by the insurance company or otherwise —
a
for payment (at any time) of amounts which are determined by fluctuations in the value of property of any description or fluctuations in an index of the value of property of any description;
b
for delivery of an asset other than an asset for the valuation of which provision is made in regulation 50 of these Regulations to or by the insurance company; or
c
for the conversion of an asset held by the insurance company or another party to —
i
an asset of a different type; or
ii
a different asset of the same type.
2
Subject to paragraph (3) below, for the purposes of this Part of these Regulations an asset has the effect of a derivative contract if the asset is an asset (other than an approved security or an asset falling within paragraph (a) of regulation 52 above) and the holding of the asset confers contractual rights or imposes contractual obligations to make or accept payment, delivery or conversion as set out in sub-paragraphs (a) to (c) of paragraph (1) above.
3
A contract or asset does not have the effect of a derivative contract by reason only that —
a
it provides for the unconditional delivery of assets, or for the payment for unconditional delivery of assets, such delivery or payment to be made within a period commencing at the date of the contract and extending —
i
in the case of a listed security, for the usual period for delivery or payment as determined by the rules of the stock exchange or regulated market on which the securities are listed or facilities for dealing have been granted;
ii
in any other case, for twenty working days;
b
it is a contract of the type described in regulation 45(8) above in respect of which the conditions set out in regulation 45(9) above have been satisfied; or
c
it is a transaction to which regulation 47A(1) above applies.
4
Rights in respect of a contract or asset which has the effect of a derivative contract shall —
a
in the case of a contract or asset having the effect of a derivative contract to which regulation 55 above applies, be valued in accordance with regulation 55(1) above; and
b
in the case of a contract or asset having the effect of a derivative contract to which regulation 55 above does not apply, have a value not exceeding an amount calculated in accordance with regulation 48 above.
5
For the purposes of paragraph (4) above, a contract or an asset has the effect of a derivative contract which is listed or transacted with an approved counterparty if it is itself so listed or transacted.
Assets to be taken into account only to a specified extent
12
For regulation 57 of the 1994 Regulations (assets to be taken into account only to a specified extent), substitute —
Assets to be taken into account only to a specified extent
57
1
Subject to paragraphs (5) and (6) below the aggregate value of the assets of an insurance company as determined in accordance with this Part of these Regulations shall, for any of the purposes for which this Part of these Regulations apply, be reduced by an amount representing the aggregate of —
a
the amount by which the company is exposed to assets of any description in excess of the permitted asset exposure limit for assets of that description;
b
the amount by which the company is exposed to a counterparty in excess of the permitted counterparty exposure limit for such counterparty;
c
the amount by which the company has an excess concentration with a number of counterparties;
d
the value of any assets transferred to or for the benefit of the company in pursuance of a condition in a derivative contract to which regulation 55(2) above does not apply or a related contract; and
e
the value of any assets transferred to or for the benefit of the company in pursuance of a contract having the effect of a derivative contract to which regulation 55(2) above does not apply or a related contract,
as determined in accordance with Schedule 12 to these Regulations.
2
Where a company is exposed to assets of any description in excess of the permitted asset exposure limit for such assets, the reduction required to be made by paragraph (1)(a) above shall be made —
a
by deducting (as far as possible) the amount of the excess from the assets of that description held by the insurance company; and
b
where the company does not hold sufficient assets of that description to eliminate the excess (or does not hold any assets of that description) by making an appropriate deduction from the aggregate value of the assets which the company would otherwise be permitted to take into account for any of the purposes for which this Part of these Regulations applies.
3
Where an insurance company is required to make a reduction in accordance with paragraphs (1)(b), (c), (d) or (e) above, the reduction shall be made by making a deduction from the aggregate value of the assets which the company would otherwise be permitted to take into account for any of the purposes for which this Part of these Regulations applies.
4
Where an insurance company carrying on long term business has attributed assets partly to a long term business fund and partly to its other assets, any reduction required to be made by this regulation shall be made in the same proportion as the attribution.
5
Assets of an insurance company comprising —
a
approved securities or any interest accrued thereon;
b
debts to which regulation 48(3) applies;
c
rights to which regulation 48(5), (8) or (9) applies;
d
debts in respect of premiums;
e
moneys due from, or guaranteed by, the government of any state which belongs to Zone A as defined in Council Directive 89/647/EEC of 18 December 1989 on a solvency ratio for credit institutions;
f
shares in or debts due or to become due from a dependant falling within regulation 46 above;
g
holdings in a scheme falling within Council Directive 85/611/EEC of 20 December 1985 on the co-ordination of laws, regulations and administrative provisions relating to undertakings for collective investments in transferable securities; or
h
deferred acquisition costs
shall not be taken into account in any of the calculations described in paragraph (1) above.
6
Where a company has entered into any contracts providing for the payment of index linked benefits, the provisions of paragraph (1)(a) above shall not apply to assets of that company to the extent that they are held to match liabilities in respect of such benefits.
Interpretation: Part IX
13
1
Regulation 58 of the 1994 Regulations (interpretation: Part IX) shall be amended as follows.
2
For the definition of “general business liabilities” substitute —
“general business liabilities” has the same meaning as in Part VIII of these Regulations;
.
3
After the definition of “general business liabilities” insert —
“insurance liabilities” means amounts calculated in accordance with this Part of these Regulations in respect of those items shown at C and D under the heading “Liabilities” set out in paragraph 9 of Schedule 9A to the Companies Act 1985;
.
Long term and general business
14
In regulation 60(1) of the 1994 Regulations (long term and general business), omit the words “in respect of long term and general business”.
Provision for adverse changes
15
For regulation 61 of the 1994 Regulations (provision for adverse changes), substitute —
Provision for adverse changes
61
1
An insurance company which has or may have (following the exercise of any right by the company or any other party) an obligation to deliver assets or make a payment shall —
a
at all times identify the assets held by it which it considers to be the most suitable to cover such obligation; and
b
make prudent provision for the effect on the amount of its excess assets of adverse variations between the value of the assets identified and the value of the assets which it is or may be obliged to deliver or the amount of the payment which it is or may be obliged to make.
2
For the purposes of paragraph (1) above the company shall take into account all reasonably foreseeable adverse variations and shall have particular regard to past volatility in the value of the assets concerned (or assets of a similar nature) and the possibility of adverse changes in such volatility in the future.
3
For the purposes of this regulation, “the amount of its excess assets” means the difference between the aggregate value of its assets, determined in accordance with Part VIII of these Regulations, and the amount of its liabilities, other than liabilities determined in accordance with this regulation.
General Business Liabilities
16
For regulation 62 of the 1994 Regulations (general business liabilities), substitute —
General business liabilities
62
The amount of insurance liabilities which are general business liabilities shall be determined in accordance with the rules set out in Section D of Chapter II of Part I of Schedule 9A to the Companies Act 1985.
Long term liabilities
17
At the end of paragraph (3) of regulation 64 of the 1994 Regulations (long term business liabilities), substitute a semi-colon for the full stop and insert —
e
any rights under contracts of reinsurance in respect of long term business.
Rates of interest
18
In paragraph (3) of regulation 69 of the 1994 Regulations (rates of interest), for sub-paragraph (b) substitute —
b
the future income from any asset required to be taken into account (whether interest, dividends or repayment of capital) shall be reduced by a proportion corresponding to such of the excess exposure to assets of that description, calculated in accordance with paragraph 12 of Schedule 12 to these Regulations, as may reasonably be attributed to such assets.
Schedule 10
19
For Schedule 10 to the 1994 Regulations, substitute Schedule 10 as set out in Schedule 1 to these Regulations.
Schedule 12
20
For Schedule 12 to the 1994 Regulations, substitute Schedule 12 as set out in Schedule 2 to these Regulations.
Transitional provisions
21
An insurance company may, until 1st July 1996 for any of the purposes of which Part VIII of the 1994 Regulations apply, apply the 1994 Regulations as if the provisions of these Regulations had not been made.
Anthony Nelson
Minister for Trade,
Department of Trade and Industry
14th December 1995


text:
Citation, commencement and interpretation
1
1
This Order may be cited as the Winchester and Eastleigh Healthcare National Health Service Trust (Transfer of Trust Property) Order 1995 and shall come into force on 26th April 1995.
2
In this Order —
“the Authority” means the North and Mid Hampshire Health Authority;
“the Trust” means the Winchester and Eastleigh Healthcare National Health Service Trust;
“the trust property” means the items specified in a schedule of trust property prepared by and agreed upon by the Authority and the Trust on 8th December 1994, which schedule has been signed on behalf of both the Authority and the Trust.
Transfer of trust property
2
On 26th April 1995 the trust property shall be transferred from the Authority to the Trust.
Signed by authority of the Secretary of State for Health
Tom Sackville
Parliamentary Under Secretary of State,
Department of Health
29th March 1995


text:
Citation, commencement and interpretation
1
1
This Order may be cited as the National Blood Authority (Transfer of Trust Property) Order 1995 and shall come into force on 20th October 1995.
2
In this Order —
“the first Authority” means the South and West Regional Health Authority;
“the second Authority” means the National Blood Authority;
“the trust property” means the items specified in a schedule of trust property prepared by and agreed upon by the South Western Regional Health Authority and the second Authority on 19th January 1994, which schedule has been signed on behalf of both the South Western Regional Health Authority and the second Authority.
Transfer of trust property
2
On 20th October 1995 the trust property shall be transferred from the first Authority to the second Authority.
Signed by authority of the Secretary of State for Health
Tom Sackville
Parliamentary Under Secretary of State,
Department of Health
21st September 1995


text:
Citation and commencement
1
These Regulations may be cited as the National Health Service (Optical Charges and Payments) Amendment Regulations 1995 and shall come into force on 1st February 1995.
Amendment of regulation 1 of the National Health Service (Optical Charges and Payments) Regulations 1989
2
In regulation 1(2) of the National Health Service (Optical Charges and Payments) Regulations 1989 (interpretation), in paragraph (a) of the definition of “ NHS sight test fee”, for “£34.22” there is substituted “£35.09”.
Signed by authority of the Secretary of State for Health
Gerald Malone
Minister of State,
Department of Health
10th January 1995


text:
1
This Order may be cited as the Inheritance Tax (Indexation) Order 1995.
2
The amounts which, unless Parliament otherwise determines, will be treated by virtue of section 8 of the Inheritance Tax Act 1984 as specified in the Table in Schedule 1 to that Act in relation to chargeable transfers on or after 6th April 1996 are as follows —
TABLE OF RATES OF TAX
Portion of value Rate of tax Lower Limit Upper Limit Per cent. £ £
0 160,000 NIL 160,000 — 40
Derek Conway
Simon Burns
Two of the Lords Commissioners of Her Majesty’s Treasury
28th November 1995