Part VI Companies, oil, insurance etc.
Chapter I Companies
Transactions within groups
C1171CF1Elections under section 171A: insurance companies
1
This section applies where —
a
an election is made under section 171A in relation to a gain or loss, and
b
company B is an insurance company.
2
For the purposes of section 171A(1)(c), section 440(3) of the Taxes Act (disposals of certain assets by and to insurance companies to fall outside the rule in section 171) is to be disregarded.
3
Subsection (2) does not apply if—
a
company A is an insurance company, and
b
the gain or loss arose in respect of the disposal of an asset that, immediately before the disposal, was part of that company's long-term insurance fund.
4
The chargeable gain or allowable loss treated as accruing to company B as a result of the election is to be treated as arising in respect of an asset that is not part of company B's long-term insurance fund.
5
In this section “insurance company” and “long-term insurance fund” have the same meaning as in Chapter 1 of Part 12 of the Taxes Act (see section 431(2) of that Act).