Part VI Companies, oil, insurance etc.

Chapter III Insurance

C1210BF1Disposal and acquisition of F7section 119 or 120 securities

1

Subsections (2) to (4) below apply in a case where, within a period of 10 days, an insurance company disposes of a number of F3section 119 or 120 securities and (whether subsequently or previously) acquires a number of F3section 119 or 120 securities if—

a

the securities disposed of decrease the size of a F6chargeable section 119 or 120 holding,

b

the securities acquired increase the size of the same F6chargeable section 119 or 120 holding, and

c

(apart from this section) an allowable loss would accrue on the disposal.

2

The securities disposed of shall be identified with the securities acquired.

3

The securities disposed of shall be identified with securities acquired before the disposal rather than securities acquired after the disposal and—

a

in the case of securities acquired before the disposal, with those acquired later rather than those acquired earlier, and

b

in the case of securities acquired after the disposal, with those acquired earlier rather than those acquired later.

4

Where securities acquired could be identified with securities disposed of either at an earlier or at a later date, they shall be identified with the former rather than the latter; and the identification of securities acquired with securities disposed of on any occasion shall preclude their identification with securities comprised in a later disposal.

5

Subsections (2) to (4) above have effect subject to section 105(1).

6

Subsections (2) to (4) above do not apply to—

a

securities which are F2assets within section 212(1).F5...

F5b

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7

Subsections (2) to (4) above do not apply if—

a

the securities disposed of are F8assets wholly matched to BLAGAB liabilities and the assets are appropriated to a BLAGAB internal linked fund,

b

the securities acquired are, on acquisition, appropriated to that or another internal linked fund, and

c

the disposal and acquisition are made with a view to adjusting the value of the assets of that fund, or of those funds, in order to match its or their liabilities.

F48

In this section—

  • “BLAGAB internal linked fund” means an internal linked fund all the assets appropriated to which are matched wholly to BLAGAB liabilities,

  • “chargeable section 119 or 120 holding” means a holding which is a separate holding as a result of section 119(1)(a), (c) or (d) or section 120(1)(a), (c) or (d) of the Finance Act 2012 (and section 121(1) and (2) of that Act),

  • “internal linked fund”, in relation to an insurance company, means an account—

    1. a

      to which assets matched to the company's life assurance liabilities are appropriated by the company, and

    2. b

      which may be divided into units the value of which is determined by the company by reference to the value of those assets, and

  • “section 119 or 120 securities” means securities within the meaning of section 119 or 120 of the Finance Act 2012 (see section 121(6)).