This Order, made pursuant to section 46(9) of the Finance Act 1990 (“section 46”), brings that section into force on 1st January 1992.

Section 46 applies in respect of the assets of an insurance company’s long term business fund which include rights under an authorised unit trust or relevant interests in an offshore fund. The section provides, subject to certain exceptions, for a deemed disposal and immediate reacquisition at market value of such assets at the end of the company’s accounting period for the purposes of corporation tax on capital gains.