SCHEDULES

SCHEDULE 9Insurance companies: transfers etc

Transfer schemes: old annuity contracts

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1

Paragraph 16 of Schedule 7 to FA 1991 (transitional relief for old general annuity contracts) is amended as follows.

2

In sub-paragraph (7), in the definition of “old annuity contract”, insert at the end “ (including one forming part of the business transferred to another insurance company by an insurance business transfer scheme) ”.

3

After that sub-paragraph insert—

8

Where—

a

business is transferred to an insurance company by an insurance business transfer scheme during an accounting period of the company, and

b

the business transferred consists of or includes old annuity contracts (“the transferred contracts”),

the reference in the definition of R1 in sub-paragraph (2) above to the company's opening liabilities for the accounting period is, in relation to the transferred contracts, a reference to the company's liabilities in respect of the transferred contracts immediately after the transfer.