OpenLegislation

Section 171C Elections under section 171A: insurance companiesF1C1

United Kingdom

(1)

This section applies where —

(a)

an election is made under section 171A in relation to a gain or loss, and

(b)

company B is an insurance company.

(2)

For the purposes of section 171A(1)(c), F2section 118 of the Finance Act 2012 (disposals of certain assets by and to insurance companies to fall outside the rule in section 171) is to be disregarded.

(3)

Subsection (2) does not apply if—

(a)

company A is an insurance company, and

(b)

the gain or loss arose in respect of the disposal of an asset that, immediately before the disposal, was F3held for the purposes of the company's long-term business.

(4)

The chargeable gain or allowable loss treated as accruing to company B as a result of the election is to be treated F4for the purposes of section 210A (ring-fencing of losses) as a non-BLAGAB chargeable gain or (as the case may be) a non-BLAGAB allowable loss.

F5(5)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations

Textual amendments

F1

Ss. 171A-171C substituted for s. 171A (with effect in accordance with Sch. 12 para. 5 of the amending Act) by Finance Act 2009 (c. 10), Sch. 12 para. 1

F2

Words in s. 171C(2) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 77(2)

F3

Words in s. 171C(3)(b) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 77(3)

F4

Words in s. 171C(4) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 77(4)

F5

S. 171C(5) omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 77(5)

Modifications

C1

Ss. 171A-171C modified (with effect in accordance with s. 1184(1) of the affecting Act) by Corporation Tax Act 2010 (c. 4), ss. 601, 1184(1) (with Sch. 2)