
1 
This Order may be cited as the Life Assurance (Apportionment of Receipts of Participating Funds) (Applicable Percentage) Order 1990 and shall come into force on 17th August 1990.
2 
In this Order—
 “business day” has the same meaning as in section 92 of the Bills of Exchange Act 1882; and
 “the principal section” means section 432E of the Income and Corporation Taxes Act 1988.
3 
The applicable percentage for the purposes of subsection (3) of the principal section in relation to any period of account shall be in all the cases to which the principal section applies the smaller of —
(a) the mean determined in accordance with article 4 below of the gross redemption yields applicable to 15-year British Government Stocks with high coupons as compiled by the Financial Times, the Institute of Actuaries and the Faculty of Actuaries, and
(b) the net investment yield of the relevant business determined in accordance with article 5 below.
4 

(1) Subject to paragraph (2) below, the mean determined in accordance with this article is the mean of the opening and closing yields where —
(a) the opening yield is the average of the gross redemption yields referred to in article 3(a) which were compiled for each of the first five business days beginning with the day before the first day of the period of account in question or, if that day is not a business day, the first business day thereafter; and
(b) the closing yield is the average of the gross redemption yields referred to in article 3(a) which were compiled for each of the first five business days beginning with the last day of the period of account in question or, if that day is not a business day, the first business day thereafter.
(2) Where the period of account is not a period of twelve months, the mean determined in accordance with this article is the yield which results from multiplying the mean determined in accordance with paragraph (1) above by the fraction—A12where
 A is the number of months, and any fraction of a month, contained in the period of account.
5 
The net investment yield determined in accordance with this article is—BC×100per cent.where—
 B is the net amount referred to in subsection (1) of the principal section as brought into account for the period in question for the purposes of section 83(1) of the Finance Act 1989 in respect of the relevant business less the part of that net amount which is attributable to assets linked solely to a particular category of business; and
 C is the mean of the opening and closing liabilities of the relevant business reduced by the opening and closing values of any assets of the relevant business linked solely to a particular category of business.
David Lightbown
Thomas Sackville
Two of the Lords Commissioners of Her Majesty’s Treasury
26th July 1990