724 Insurance companies.U.K.
(1)M1The references in section 715(1)(a) and (2)(a) to computing the profits or losses of a trade shall not be taken as applying to a computation of income for the purposes of section 76(2).
[F1(1A)If at any time securities held by an insurance company cease to be within one of the categories set out in section 440(4) and come within another of those categories, the company shall be treated for the purposes of sections 710 to 728 as transferring the securities to itself at that time.]
(2)Where an insurance company carrying on life assurance business is treated as receiving annual profits or gains under section 714(2)or 716(3)in respect of securities held as investments in connection with that business, the profits or gains shall be treated for the purposes of section 434(3)to (5)as if they were income from investments held in connection with that businessF2.
(3)M2Section 713(2)(a) or (3)(a) (as the case may be) shall not apply if the transferor is an insurance company [F3to the extent that the securities transferred are immediately before the transfer referable to a business the profits of which are computed in accordance with section 436 or 441.]
(4)M3Section 713(2)(b) or (3)(b) (as the case may be) shall not apply [F4if the transferee is an insurance company to the extent that the securities transferred are immediately after the transfer referable to a business the profits of which are computed in accordance with section 436 or 441.]
F5(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Textual Amendments
F11990 s.41and Sch.6 para.9(1)on and after 24May 1990subject to the commencement provisions of paras.11and 12.
F2 Repealed by 1990 s.132and Sch.19 Part IV.
F31990 s.42and Sch.7 para.4(a)for accounting periods beginning on or after 1January 1990 (see para.10).Previously
“and—(a) the transfer falls to be taken into account in computing its profits or losses for the purposes of section 436; or (b) if the company became entitled to any interest on the securities transferred, it would by virtue of section 441(1) be liable, in respect of the interest, to tax computed by reference to the amount of income received in the United Kingdom; or (c) if the company became entitled to any interest on the securities transferred and applied the interest for the purposes of its foreign life assurance fund, it would by virtue of section 441(2) not be liable to tax in respect of the interest.”
F41990 s.42and Sch.7 para.4(b)for accounting periods beginning on or after 1January 1990 (see para.10).Previously
“if subsection (3) above would apply if in that subsection “transferor” read “transferee”.”.
F5S. 724(5)-(8) repealed (27.7.1993 with effect as mentioned in s. 103(3)(4) of the amending Act) by 1993 c. 34, ss. 103(2)(f)(3)(4), 213, Sch. 23 Pt. III(9)
Modifications etc. (not altering text)
C1Ss. 710-728 modified (27.7.1993) by 1993 c. 34, s. 63(1)(2)
Ss. 710-728 modified (27.7.1993) by 1993 c. 34, s. 63(3)(4)
Ss. 710-728 modified (27.7.1993) by 1993 c. 34, s. 63(8)(10)
Ss. 710-728 modified (27.7.1993 with effect for the year 1992-93 and subsequent years of assessment) by 1993 c. 34, ss. 176(4), 184(3)
C2S. 724(1A) excluded by Finance Act 1991 (c. 31, SIF 63:1), s. 48, Sch. 7 para. 6(4)
Marginal Citations
M1Source—1985 Sch.23 16, 17
M2Source—1985 Sch.23 18(1), 19(1), (4)
M3Source—1985 Sch.23 18(2), 19(2), (5)