Capital Allowances Act 2001

560 Transfer of insurance company business U.K.

(1) This section applies if—

(a) assets are transferred as part of, or in connection with, the transfer of the whole or part of the business of an insurance company to another company,

(b) the transfer is—

(i) in accordance with [F1 an insurance business transfer scheme to transfer business which consists of the effecting or carrying out of contracts of long-term insurance, or]

(ii) a qualifying overseas transfer within the meaning of paragraph 4A of Schedule 19AC to ICTA (overseas life insurance companies).

(2) But this section does not apply in relation to any asset transferred to a non-resident company unless the asset will fall to be treated, immediately after the transfer, as an asset which is held for the purposes of the whole or a part of so much of any business carried on by the non-resident company as is carried on through a [F2 permanent establishment] in the United Kingdom.

(3) This section also does not apply if section 561 applies (transfer of a UK trade to a company in another member State).

(4) If this section applies—

(a) any allowances and charges that would have been made to or on the transferor are to be made instead to or on the transferee, and

(b) the amount of any such allowance or charge is to be calculated as if everything done to or by the transferor had been done to or by the transferee,

but no sale or transfer of assets made to the transferee by the transferor is to be treated as giving rise to any such allowance or charge.

(5) In this section—

(a) “insurance company” has the same meaning as in Chapter I of Part XII of ICTA, F3 ...

[F4 (b) “insurance business transfer scheme” means a scheme falling within section 105 of the Financial Services and Markets Act 2000 (c. 8), including an excluded scheme falling within Case 2, 3 or 4 of subsection (3) of that section,

(c) “contracts of long-term insurance” means contracts which fall within Part II of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 ( S.I. 2001/544), and

(d) “non-resident company” means a company resident outside the United Kingdom. ]

Textual Amendments

F1 Words in s. 560(1)(b)(i) substituted (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629), art. 108(2)(4)

F2 Words in s. 560(2) substituted (with effect in accordance with s. 153(4) of the amending Act) by Finance Act 2003 (c. 14), s. 153(1)(d)

F3 Word in s. 560(5)(a) repealed (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629), art. 108(3)(a)(4)

F4 S. 560(5)(b)-(d) substituted (1.12.2001) for s. 560(5)(b) by The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629), art. 108(3)(b)(4)

Modifications etc. (not altering text)

C1 S. 560 modified (1.1.2002) by S.I. 1997/473, reg. 53D (as inserted by S.I. 2001/3975, reg. 8)

C2 S. 560 amendment to earlier affecting provision SI 1997/473 (8.4.2004) by The Friendly Societies (Modification of the Corporation Tax Acts) (Amendment) Regulations 2004 (S.I. 2004/822) , regs. 1 , 40