7(1)This paragraph applies where there is for the purposes of the 1992 Act a disposal or acquisition of an asset which is—
(a)currency,
(b)a debt which is not a debt on a security and the right to settlement under which is a qualifying asset,
(c)a security (as defined in section 132 of the 1992 Act) where the right to settlement under the debt on the security is a qualifying asset, or
(d)an obligation which by virtue of section 143 of the 1992 Act (futures and options) is regarded as an asset to the disposal of which that Act applies and which is a duty under a currency contract.
(2)In a case where—
(a)the condition mentioned in sub-paragraph (3) below is fulfilled, and
(b)section 139, 171 or 172 of the 1992 Act (reconstructions, groups etc.) would, apart from this paragraph, apply as regards the disposal or acquisition,
the section concerned shall not apply as regards the disposal and the corresponding acquisition or (as the case may be) shall not apply as regards the acquisition and the corresponding disposal.
(3)The condition is that stated in paragraph (a) or (b) below (as the case may be)—
(a)the disposal is by a qualifying company and immediately before the disposal the asset is held wholly for qualifying purposes;
(b)the acquisition is by a qualifying company and immediately after the acquisition the asset is held wholly for qualifying purposes.
(4)For the purposes of this paragraph qualifying purposes are purposes which constitute one or both of the following—
(a)purposes of long term insurance business;
(b)purposes of mutual insurance business;
and “long term insurance business” means insurance business of any of the classes specified in Schedule 1 to the M1Insurance Companies Act 1982.
(5)This paragraph applies where the disposal or acquisition (as the case may be) is made on or after the commencement day of the company mentioned in sub-paragraph (3)(a) or (b) above (as the case may be).
Marginal Citations