Finance Act 2007

Transfer schemes: old annuity contracts

13 (1) Paragraph 16 of Schedule 7 to FA 1991 (transitional relief for old general annuity contracts) is amended as follows.

(2) In sub-paragraph (7), in the definition of “old annuity contract”, insert at the end “(including one forming part of the business transferred to another insurance company by an insurance business transfer scheme)”.

(3) After that sub-paragraph insert—

“(8) Where—

(a) business is transferred to an insurance company by an insurance business transfer scheme during an accounting period of the company, and

(b) the business transferred consists of or includes old annuity contracts (“the transferred contracts”),

the reference in the definition of R1 in sub-paragraph (2) above to the company’s opening liabilities for the accounting period is, in relation to the transferred contracts, a reference to the company’s liabilities in respect of the transferred contracts immediately after the transfer.”