Corporation Tax Citation, commencement and effect 1 1 These Regulations may be cited as the Insurance Companies (“The Long-term Business Fixed Capital”) Regulations 2023 and come into force on 12th December 2023. 2 These Regulations have effect in relation to accounting periods beginning on or after 1st January 2024. Structural assets of a company’s long-term business 2 1 For the purposes of section 137 of the Finance Act 2012— a assets of an insurance company’s long-term business are to be regarded as being structural assets of that business if they— i are held by the company in a fund that is not a with-profits fund , and ii are of a description specified in regulation 3; and b assets not within paragraph (a) or subsection (3) of that section are to be regarded as not being structural assets of an insurance company’s long-term business . 2 Paragraph (1)(a)(i) does not apply to assets of a company carrying on mutual life assurance business. Specified description of assets 3 1 The assets of an insurance company (“ A ”) described in paragraphs (2) to (6) are specified for the purposes of regulation 2(1)(a). 2 Shares, beneficial interests in a company limited by guarantee, debts or loans held by A in another company (“ B ”) where— a either— i B is a 51% subsidiary of A, or ii where B is a company limited by guarantee, A is beneficially entitled to more than 50 per cent of any assets of B available for distribution on a winding up, and b B is— i an insurance company, ii a non-UK resident company which would be an insurance company if section 65(2)(a) of the Finance Act 2012 included a reference to permission to carry on the activity of effecting or carrying out contracts of insurance under the law of a territory outside the United Kingdom which is similar to or corresponds to Part 4A of FISMA 2000 , iii a company whose business consists wholly or mainly in providing services to companies which are members of the same group of companies as A, iv a company whose business consists wholly or mainly in holding shares or securities of companies in one of paragraphs (i) to (iii) which are its 51% subsidiaries, v a company whose business consists wholly or mainly in holding shares or securities of companies in paragraph (iv) which are its 51% subsidiaries, or vi a company which was within one of paragraphs (i) to (v) before becoming dormant (within the meaning given by section 1169 of the Companies Act 2006 ). 3 Any interest in a property which is occupied by A, or a company in the same group as A, for the purposes of its business. 4 Shares, debts or loans held by A in another company (“ B ”) where— a A carries on mutual life assurance business, b B is a 51% subsidiary of A, and c B is not an investment company or a matching adjustment company. 5 Shares held by A in another company (“ B ”) where— a B is a matching adjustment company, and b A’s principal purpose for holding the shares in B is to apply a matching adjustment under regulation 42 of the Solvency 2 Regulations 2015 . 6 Goodwill. 7 For the purposes of this regulation, two companies are members of the same group of companies if— a one is the 51% subsidiary of the other, or b both are 51% subsidiaries of a third company. 8 In this regulation— “ goodwill ” has the same meaning as in section 715(3) of CTA 2009 ; “ holding company ” means a company whose business consists wholly or mainly in the holding of shares or securities of companies which are its 51% subsidiaries; “ investment company ” means a company— whose business consists wholly or mainly in the making of investments, and which derives the principal part of its income from the making of investments, but does not include a holding company of a trading group; “ matching adjustment company ” means a company which is party to an arrangement entered into for the purposes of an application by A to the Prudential Regulatory Authority (“the PRA”) for permission to apply a matching adjustment under regulation 42 of the Solvency 2 Regulations 2015, which the PRA must approve, or has approved, under that regulation; “ trading group ” means a group the business of whose members, when taken together, consists wholly or mainly in the carrying on of a trade or trades. Scott Mann Stuart Anderson Two of the Lords Commissioners of His Majesty’s Treasury 20th November 2023