Overseas life insurance companies7A

1

Paragraph 6 does not apply if—

a

the person making the disposal (“D”) is an overseas life insurance company or would be such a company if it were carrying on its life assurance business in the United Kingdom through a permanent establishment there,

b

immediately before the disposal, no more than 40% of the market value of D’s assets derives from investments consisting of—

i

interests in UK land, or

ii

rights or interests in companies which are UK property rich,

c

the asset disposed of is a right or interest in a collective investment vehicle that is a company (whether as a result of paragraph 4 or otherwise) and is UK property rich, and

d

immediately before the disposal, D does not have a 10% investment in that vehicle.

2

D has a 10% investment in a collective investment vehicle if, applying the rule in paragraph 9 (but without regard to paragraph 10) of Schedule 1A as if references to 25% were references to 10%, D would be regarded as having a 10% investment in the vehicle.

Offshore collective investment vehicles (other than UK feeder vehicles) that meet the conditions in paragraph 7(2)(a) and (b)7B

1

Paragraph 6 does not apply if—

a

the person making the disposal is an offshore collective investment vehicle which meets the conditions in paragraph 7(2)(a) and (b),

b

immediately before the disposal, the offshore collective investment vehicle is not a UK feeder vehicle,

c

the asset disposed of is a right or interest in a collective investment vehicle that is a company (whether as a result of paragraph 4 or otherwise) and is UK property rich (a “UK property rich vehicle”), and

d

immediately before the disposal, the offshore collective investment vehicle does not have a 10% investment in the UK property rich vehicle.

2

An offshore collective investment vehicle is a “UK feeder vehicle” at any time if at least 85% of the market value of the assets of the vehicle at that time derives from units in a single collective investment vehicle that is UK property rich.

3

An offshore collective investment vehicle has a 10% investment in a UK property rich vehicle if, applying the rule in paragraph 9 (but without regard to paragraph 10) of Schedule 1A as if references to 25% were references to 10%, the offshore collective investment vehicle would be regarded as having a 10% investment in the UK property rich vehicle.