Valid from 10/07/2003
444ACTransfers of business: modification of s.83(2) FA 1989U.K.
(1)This section applies where an insurance business transfer scheme has effect to transfer long-term business from one person (“the transferor”) to another (“the transferee”).
(2)If—
(a)the element of the transferee’s line 15 figure representing the transferor’s long-term insurance fund, exceeds
(b)the amount of the liabilities to policy holders and annuitants transferred to the transferee,
the excess is not to be regarded as other income of the transferee for the purposes of section 83(2)(d) of the Finance Act 1989.
(3)In this section and section 444AD “the element of the transferee’s line 15 figure representing the transferor’s long-term insurance fund” means so much of—
(a)the amount which is brought into account by the transferee as other income in the period of account of the transferee in which the transfer takes place, as represents
(b)the assets transferred to the transferee.