PART XII SPECIAL CLASSES OF COMPANIES AND BUSINESSES
CHAPTER I INSURANCE COMPANIES, UNDERWRITERS AND CAPITAL REDEMPTION BUSINESS
F2Miscellaneous provisions relating to life assurance business
F3444AECCParts of transfer scheme arrangements: F1life assurance trade profits advantage transferee
1
A F4life assurance trade profits advantage is obtained by the transferee if—
a
F5section 35 profits of its life assurance business for a period of account to which this section applies are, or at the relevant time are expected to be, less than they would be but for any part of the transfer scheme arrangements, or
b
F5section 35 losses of its life assurance business for such a period of account are, or at the relevant time are expected to be, greater than they would be but for the any part of the transfer scheme arrangements.
2
But if any of the relevant associated operations would, by itself, cause the F6section 35 profits to be greater, or the F7section 35 losses to be less, than they would be but for that operation, the amount by which those profits would be greater or those losses would be less shall be taken into account in determining whether a F8life assurance trade profits advantage is obtained by the transferor.
3
If F9a life assurance trade profits advantage is obtained by the transferee, the amount of F10the advantage is—
a
the amount by which F11section 35 profits for each period of account to which this section applies are, or at the relevant time are expected to be, less than they would be but for the relevant part of the arrangements, or
b
the amount by which F11section 35 losses for each such period of account are, or at the relevant time are expected to be, greater than they would be but for the relevant part of the arrangements.
4
This section applies to a period of account if it is—
a
the first period of account of the transferee ending after the transfer date or after the effecting of the first of any relevant associated operations (if that occurs before the transfer date),
b
the second period of account of the transferee ending after the transfer date or after the effecting of the last of any relevant associated operations (if that occurs after the transfer date), or
c
any intervening period of account.
5
See section 444AA for the meaning of “the transfer date”, section 444AEA for the meaning of “relevant associated operations”, section 444AEB for the meaning of “ F12section 35 profits” and “ F12section 35 losses” and “the relevant time” and section 444AECB for the meaning of “the relevant part of the arrangements”, 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))