For the purposes of this Part, activities carried on by a company in the course of—
(a)any mutual insurance or other mutual business which is not life assurance business, or
(b)any basic life assurance and general annuity business,
are treated as not constituting the whole or any part of a trade.
(1)This section applies if in any accounting period—
(a)a company is a party to a creditor relationship for the purposes of its life assurance business, and
(b)that creditor relationship is one in relation to which sections 415 and 585 (which both apply to loan relationships with embedded derivatives) would have effect but for the fact that the company accounts for the creditor relationship at fair value through profit and loss.
(2)This Part and Part 5 (loan relationships) have effect for that accounting period as they would if the creditor relationship were one in relation to which those sections have effect.
(1)Chapter 5 (continuity of treatment on transfers within groups) has effect in relation to insurance companies with the following modifications.
(2)Section 625(1)(a) (which sets out one of the conditions for that section to apply) has effect as if for “section 626(2)” there were substituted “section 626(2), (2A) or (2B)”.
(3)Section 626 (transactions to which section 625 applies) has effect as if after subsection (2) there were inserted—
“(2A)A transaction is within this subsection if it is a transfer between two companies of business consisting of the effecting or carrying out of contracts of long-term insurance which has effect under an insurance business transfer scheme.
(2B)A transaction is within this subsection if it is a transfer between two companies which is a qualifying overseas transfer.”
(4)Section 625 (group member replacing another as party to derivative contract) does not apply as a result of a transaction or series of transactions within section 626(2) or (3) in relation to a transfer of an asset, or of rights or duties under or an interest in an asset, if the asset was within one of the categories set out in section 440(4)(a), (d) and (e) of ICTA (assets held for certain categories of long-term business)—
(a)immediately before the transfer, or
(b)immediately after it.
(5)Section 625 does not apply as a result of a transaction within section 626(2A) or (2B) in relation to a transfer of an asset, or of rights or duties under or an interest in an asset, if the asset—
(a)was within one of the categories set out in section 440(4) of ICTA (transfer of assets etc) immediately before the transfer, and
(b)is not within that category immediately after it.
(6)Subsection (7) applies for the purposes of subsection (5) if one of the companies is an overseas life insurance company.
(7)An asset is taken to be within the same category both immediately before the transfer and immediately after it if the asset—
(a)was within one category immediately before the transfer, and
(b)is within the corresponding category immediately after it.