PART XII SPECIAL CLASSES OF COMPANIES AND BUSINESSES
CHAPTER I INSURANCE COMPANIES, UNDERWRITERS AND CAPITAL REDEMPTION BUSINESS
F1Miscellaneous provisions relating to life assurance business
C1C4C9440F2 Transfers of assets etc.
C21
If at any time an asset (or a part of an asset) held by an insurance company ceases to be within one of the categories set out in subsection (4) below and comes within another of those categories, the company shall for the purposes of corporation tax be deemed to have disposed of and immediately re-acquired the asset (or part) for a consideration equal to its F11fair value at that time.
C3C5C62
Where—
F8a
an asset is acquired by a company as a result of an insurance business transfer scheme which has effect to transfer long-term business from any person (“the transferor”) to the company, and
b
the asset (or part of it) is within one of the categories set out in subsection (4) below immediately before the acquisition and is within another of those categories immediately afterwards,
the transferor shall for the purposes of corporation tax be deemed to have disposed of and immediately re-acquired the asset (or part) immediately before the acquisition for a consideration equal to its F11fair value at that time.
F72A
F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F102B
F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Where, apart from this subsection, section F3171 or 173 the 1992 Act (transfers within a group) would apply to a disposal or acquisition by an insurance company of an asset (or part of an asset) which, immediately before the disposal or (as the case may be) immediately after the acquisition, is within one of the categories set out in F4paragraphs F13(a), (d) and (e) of subsection (4) below, that section shall not apply to the disposal or acquisition.
F5C7C84
The categories referred to in subsections (1) to (3) above are—
F14a
assets which are linked solely to gross roll-up business or are foreign currency assets;
d
assets linked solely to basic life assurance and general annuity business;
C10f
other assets.
5
F16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F66
In a case where the profits of a company’s life assurance business are charged to tax in accordance with Case I of Schedule D this section has effect with the modification specified in section 440B(3).
Cross-heading before s. 434 inserted (with effect in accordance with Sch. 8 para. 57(1) of the amending Act) by Finance Act 1995 (c. 4), Sch. 8 para. 51(4) (with Sch. 8 para. 55(2))