337Transfers of loans on insurance business transfersU.K.
(1)The case referred to in section 335(1)(b) is where—
(a)a transfer between two companies occurs to which this section applies, and
(b)as a result one of the companies (“the transferee”) directly or indirectly replaces the other (“the transferor”) as a party to a loan relationship.
(2)This section applies to the transfers specified in subsection (3), so far as they are not excluded by subsection (4).
(3)They are—
(a)a transfer between two companies of business consisting of the effecting or carrying out of contracts of long-term insurance which has effect under an insurance business transfer scheme, and
(b)any transfer between two companies which is a qualifying overseas transfer.
[F1(3A)In subsection (3)(b) “qualifying overseas transfer” means so much of a transfer of the whole or any part of the business of an overseas life insurance company carried on through a permanent establishment in the United Kingdom as takes place in accordance with an authorisation granted outside the United Kingdom for the purposes of [F2Article 39 of Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II)].]
(4)Subsection (3) does not apply to a transfer of an asset, or of rights under or an interest in an asset, if the asset—
(a)was within one of [F3the applicable categories] immediately before the transfer, and
(b)is not within that category immediately after it.
[F4(4A)For the purposes of subsection (4)(a) “the applicable categories” means—
(a)in the case of a UK life insurance company, the long-term business categories or a category of assets which are not held for the purposes of its long-term business, and
(b)in the case of an overseas life insurance company, the UK long-term business categories, a category of UK assets which are not held for the purposes of its long-term business or a category of assets which are held by it but which are not UK assets.
(4B)For the purposes of subsection (4A)—
(a)“the long-term business categories” has the same meaning as in section 116 of FA 2012,
(b)“the UK long-term business categories” and “UK assets” have the same meanings as in section 117 of that Act, and
(c)section 122 of that Act applies as it applies for the purposes of Chapter 8 of Part 2 of that Act.]
(5)Subsection (6) applies for the purposes of subsection (4) if one of the companies mentioned in subsection (3) is an overseas life insurance company.
(6)An asset is taken as being in the same category both immediately before and immediately after a transfer if the asset—
(a)was in one category immediately before the transfer, and
(b)is within the corresponding category immediately after it.
(7)In this Chapter, in relation to a case within subsection (1), “the transferee” and “the transferor” have the same meaning as in that subsection.
Textual Amendments
F1S. 337(3A) inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 149(2)
F2Words in s. 337(3A) substituted (1.1.2016) by The Solvency 2 Regulations 2015 (S.I. 2015/575), reg. 1(2), Sch. 1 para. 26(2)
F3Words in s. 337(4)(a) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 149(3)
F4S. 337(4A)(4B) inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 149(4)