PART 2Insurance companies carrying on long-term business

CHAPTER 8Assets held for purposes of long-term business

Share pooling rules

121Sections 119 and 120: supplementary

1

The applicable pooling rules also apply if the assets of the company in question include securities of a class and but for this section—

a

some of them would be regarded as a 1982 holding for the purposes of corporation tax on chargeable gains, and

b

the rest of them would be regarded as a section 104 holding for those purposes.

2

“The applicable pooling rules” means—

a

the pooling rules set out in section 119(1)(a) to (e) and (4)(a) and (b), or

b

the pooling rules set out in section 120(1)(a) to (f) and (4)(a) to (c).

3

In applying the applicable pooling rules in a case within subsection (1)—

a

the reference in any of the paragraphs in section 119(1) or (4) or 120(1) or (4) to a separate holding is to be read, where necessary, as a reference to a separate 1982 holding and a separate section 104 holding, and

b

the questions whether that reading is necessary for a paragraph and, if it is, how many securities falling within the paragraph constitute each of the two holdings are determined in accordance with paragraph 12 of Schedule 6 to FA 1990 and the identification rules applying on any subsequent acquisitions and disposals.

4

If the applicable pooling rules apply, section 105 of TCGA 1992 has effect as if securities regarded as included in different holdings as a result of those rules were securities of different classes.

5

In this section—

  • “1982 holding” has the same meaning as in section 109 of TCGA 1992, and

  • “section 104 holding” has the same meaning as in section 104(3) of TCGA 1992.

6

In this section and sections 119 and 120 “securities” means—

a

shares,

b

securities of a company, and

c

any other assets where they are of a nature to be dealt in without identifying the particular assets disposed of or acquired.