SCHEDULES

SCHEDULE 33Insurance companies

Chargeable gains

17

1

Section 171A of the Taxation of Chargeable Gains Act 1992 (c. 12) (notional transfers within group) is amended as follows.

2

After subsection (3) insert—

3A

Section 440(3) of the Taxes Act does not cause subsection (3) above to prevent the making of an election in a case where B is an insurance company; and in such a case the asset or part deemed to be transferred to B by A, and by B to C, is to be treated for the purposes of subsections (2)(c) and (3) above as not being part of B’s long-term insurance fund.

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).

3

In subsection (4), for “that subsection” substitute “ subsection (2) above ”.

4

This paragraph has effect in relation to disposals on or after 23rd December 2002.