PART XII SPECIAL CLASSES OF COMPANIES AND BUSINESSES

CHAPTER I INSURANCE COMPANIES, UNDERWRITERS AND CAPITAL REDEMPTION BUSINESS

F2Miscellaneous provisions relating to life assurance business

Annotations:
Amendments (Textual)
F2

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))

440AF1Securities.

1

Subsection (2) below applies where the assets of an insurance company include securities of a class all of which would apart from this section be regarded for the purposes of corporation tax on chargeable gains as one holding.

C5C6C1C72

Where this subsection applies—

F3a

so many of the securities as are identified in the company’s records as securities by reference to the value of which there are to be determined benefits provided for under policies or contracts the effecting of all (or all but an insignificant proportion) of which constitutes the carrying on of—

F9i

basic life assurance and general annuity business, or

ii

gross roll-up business,

shall be treated for the purposes of corporation tax as a separate holding linked solely to that business,

c

F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

C2C3d

so many of the securities as are included in the company’s F8long-term insurance fund but do not fall within F11paragraph (a) shall be treated for those purposes as a separate holding which is an asset of that fund (but not of F12the description mentioned in that paragraph), and

C4C8e

any remaining securities shall be treated for those purposes as a separate holding which is not of any of the descriptions mentioned in the preceding paragraphs.

3

Subsection (2) above also applies where the assets of an insurance company include securities of a class and apart from this section some of them would be regarded as a 1982 holding, and the rest as a F7section 104 holding, for the purposes of corporation tax on chargeable gains.

4

In a case within subsection (3) above—

a

the reference in any paragraph of subsection (2) above to a separate holding shall be construed, where necessary, as a reference to a separate 1982 holding and a separate F7section 104 holding, and

b

the questions whether such a construction is necessary in the case of any paragraph and, if it is, how many securities falling within the paragraph constitute each of the two holdings shall be determined in accordance with paragraph 12 of Schedule 6 to the Finance Act 1990 and the identification rules applying on any subsequent acquisitions and disposals.

5

Section F4105 of the 1992 Act shall have effect where subsection (2) above applies as if securities regarded as included in different holdings by virtue of that subsection were securities of different kinds.

F6F56

In this section—

  • “1982 holding” has the same meaning as in section 109 of the 1992 Act;

  • “F7section 104 holding” has the same meaning as in section 104(3) of that Act; and

  • “securities” means shares, or securities of a company, and any other assets where they are of a nature to be dealt in without identifying the particular assets disposed or acquired.

F67

In a case where the profits of a company’s life assurance business are charged to tax F13under section 35 of CTA 2009 (charge on trade profits) this section has effect with the modification specified in section 440B(4).