2

Where this section applies the transferor and the transferee are treated for the purposes of corporation tax on chargeable gains as if any assets included in the transfer which—

a

immediately before they are acquired by the transferee, were assets of the transferor's long-term insurance fund, and

b

immediately after they are so acquired are assets of the transferee's long-term insurance fund,

were acquired for a consideration of such amount as would secure that neither a gain nor a loss would accrue to the transferor on the disposal.

3

Subsection (2) above is subject to section 212.