24(1)Section 444A of the Taxes Act 1988 (transfers of business: losses etc) is amended as follows.U.K.
(2)In subsection (3), insert at the end “ if the conditions in paragraphs (a) and (b) of section 343(1) are satisfied in relation to the business transferred (construing references to an event as to the transfer). ”.
(3)After that subsection insert—
“((3ZA))Where subsection (3) above has effect, sections 343(2), (4), (5) and (7) to (12) and 344 apply in relation to the business in which the loss arose construing—
(a)references to the predecessor and the successor as to (respectively) the transferor and the transferee, and
(b)references to section 343(3) as to subsection (3) of this section,
except that nothing in section 343(8) to (10) and (12) applies in relation to the transferee.”.
(4)This paragraph has effect in relation to insurance business transfer schemes taking place on or after 1st January 2003 unless the accounting period of the transferor which ends with the day of the transfer, or the accounting period of the transferee during which the transfer takes place, began before that date.