PART XII SPECIAL CLASSES OF COMPANIES AND BUSINESSES
CHAPTER I INSURANCE COMPANIES, UNDERWRITERS AND CAPITAL REDEMPTION BUSINESS
F2Miscellaneous provisions relating to life assurance business
F3F4444ABF1Transfer schemes: transferor
F51
This section applies where—
a
an insurance business transfer scheme has effect to transfer long-term business of a person (“the transferor”) to another person (“the transferee”), and
b
condition A or condition B is met.
2
Condition A is met if any of the assets of the transferor's long-term insurance fund which are transferred F6. . . 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 F7or a friendly society, assets of a fund of the transferee which would be a with-profits fund if the transferee were an insurance company,
(“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.
F85A
In this section references to assets held by the transferor after the transfer do not include—
a
assets held on trust for the transferee, or
b
assets held to meet liabilities which have been wholly reinsured and which are intended to be transferred under an insurance business transfer scheme to the reinsurer.
F96
In this section and sections 444ABA to 444AC “the relevant period of account” means—
a
the period of account of the transferor treated by section 444AA(2) as ending immediately before the transfer date, or
b
where there is no such period, the period of account of the transferor including the transfer date.
7
See section 444AA for the meaning of “the transfer date” in this section.
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))