Section 267A Insurance companies: transfers of business.F1

United Kingdom

(1)

This section applies where there is a transfer of the whole or part of the long term business of an insurance company (“the transferor") to another company (“the transferee") in accordance with a scheme sanctioned by a court under section 49 of the M1Insurance Companies Act 1982.

(2)

Subject to subsection (3) below, where this section applies section 267 above shall not be prevented from having effect in relation to any asset included in the transfer by reason that—

(a)

the transfer is no part of a scheme of reconstruction or amalgamation,

(b)

the condition in paragraph (c) of subsection (1) of that section is not satisfied, or

(c)

the asset is within subsection (2) of that section;

and where section 267 above applies by virtue of paragraph (a) above the references in subsection (3A) of that section to the reconstruction or amalgamation shall be construed as references to the transfer.

(3)

Section 267 above shall not have effect in relation to an asset by virtue of subsection (2) above unless—

(a)

any gain accruing to the transferor—

(i)

on the disposal of the asset in accordance with the scheme, or

(ii)

where that disposal occurs after the transfer of business has taken place, on a disposal of the asset immediately before that transfer, and

(b)

any gain accruing to the transferee on a disposal of the asset immediately after its acquisition in accordance with the scheme,

would be a chargeable gain which would form part of its profits for corporation tax purposes (and would not be a gain on which, under any double taxation arrangements having effect by virtue of section 788 of the Taxes Act 1988, it would not be liable to tax).

Annotations

Textual amendments

F1: S. 267A inserted by Finance Act 1990 (c. 29), s. 48, Sch. 9 para. 1 in relation to transfers of business taking place on or after January 1st 1990.

Marginal citations

M1: 1982 c. 50

Notes on the whole Act

Textual amendments

F1: Act repealed (in relation to Tax for the year 1992/93 and subsequent years as mentioned in s. 289 of the repealing Act) by Taxation of Chargeable Gains Act 1992 (c. 12), s. 290(3), Sch. 11 para. 24(1), Sch.12 (with savings in ss. 201(3), 290, Sch. 11 paras. 22, 26(2), 27), subject to applications, powers and amendments in the following enactments: Social Security Contributions and Benefits Act 1992 (c. 4), s. 16(1)(3), Sch. 2; Social Security (Consequential Provisions) Act 1992 (c. 6), s. 5, Sch. 3 Pt. II para. 15; Taxation of Chargeable Gains Act 1992 (c. 12), ss. 1(2), 209(3); Finance (No. 2) Act 1992, ss. 24, 49(2)(3)(a)(b)(4)(9), 77, Sch. 6 paras.4, 9, Sch. 17 paras. 6(3)(6), 7; S.I. 1992/58, arts. 9, 11(3),33, Sch. 2 para.1, S.I. 1992/1725, art. 107, Sch. 8 para.2; S.I. 1995/171, reg. 4(2)(a); S.I. 1995/1916, reg. 4; 1994 c. 9, s. 258, Sch. 26 Pt. V

Notes on Part XI

Modifications

C1: See Income and Corporation Taxes Act 1988 (c. 1, SIF:63:1), ss. 114–116— special rules for partnerships involving companies.

Notes on Chapter I

Modifications

C1: See Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), ss. 21(2), 59— Pt. XI Ch. 1 to have effect to the exclusion of those sections (persons chargeable under Schs. A and D).