[F1[F2444ABTransfer schemes transferring whole of business: transferorU.K.
(1)This section applies where an insurance business transfer scheme has effect to transfer the whole, or substantially the whole, of the long-term business of a person (“the transferor”) to another person (“the transferee”) and either or both of conditions A and B are met.
(2)Condition A is met if any of the assets of the transferor's long-term insurance fund which are transferred from the transferor to the transferee by the insurance business transfer scheme are not, immediately after their transfer—
(a)if the transferee is an insurance company, assets of the transferee's long-term insurance fund, or
(b)if the transferee is not an insurance company, assets of a with-profits fund of the transferee,
(“relevant non-transferred assets”).
(3)Condition B is met if, immediately after the transfer date, the transferor—
(a)does not carry on long-term business, but
(b)holds any assets which, immediately before the transfer date, were assets of its long-term insurance fund (“retained assets”).
(4)If there are relevant non-transferred assets or retained assets (or both) the relevant amount in relation to them (see subsection (5) below) is to be taken into account under section 83(2) of the Finance Act 1989 as an increase in value of the assets of the long-term insurance fund of the transferor for the relevant period of account (see subsection (6) below).
(5)Section 444ABA makes provision for the calculation of the relevant amount in relation to relevant non-transferred assets; and section 444ABB makes provision for its calculation in relation to retained assets.
(6)In this section and sections 444ABA to 444AC “the relevant period of account” means the period of account of the transferor ending (or treated by section 444AA as ending) immediately before the transfer date.
(7)See section 444AA for the meaning of “the transfer date” in this section.]]
Textual Amendments
F1S. 444AB inserted (with effect in accordance with Sch. 33 para. 19(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 33 para. 19(1)
F2Ss. 444AB-444ABC substituted for ss. 444AB, 444ABA (with effect in accordance with Sch. 9 para. 17(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 9 para. 4(1); S.I. 2008/379, art. 2