Taxation of Chargeable Gains Act 1992

211 Transfers of business. U.K.

[F1 (1) This section applies where an insurance business transfer scheme has effect to transfer business which consists of the effecting or carrying out of contracts of long-term insurance from one person (“the transferor”) to another (“the transferee”).

F2 (1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ]

[F3 (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 [F4 held by the transferor for the purposes of its long-term business], and

(b) immediately after they are so acquired are assets [F5 held by the transferee for the purposes of its long-term business],

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.

[F6 (2A) The reference in subsection (2) above to assets included in the transfer does not include [F7 assets which formed part of the long-term business fixed capital of the company in question].]

(3) Subsection (2) above is subject to section 212.]

F8 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F9 (4) Subsection (2) does not apply in relation to assets which are referable to the long-term business of the transferor if all the income of the transferor's long-term business is chargeable to corporation tax on income under section 35 of CTA 2009.]

Textual Amendments

F1 S. 211(1)(1A) substituted (with effect in accordance with art. 66(2) of the amending S.I.) for s. 211(1) by The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629), arts. 1(2)(a), 66(1)

F2 S. 211(1A) repealed (10.7.2003) by Finance Act 2003 (c. 14), Sch. 43 Pt. 3(12)

F3 S. 211(2)(3) substituted for s. 211(2)(2A) (with effect in accordance with Sch. 9 para. 17(1) of the amending Act) by Finance Act 2007 (c. 11), Sch. 9 para. 14(2)

F4 Words in s. 211(2)(a) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 83(2)(a)

F5 Words in s. 211(2)(b) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 83(2)(b)

F6 S. 211(2A) inserted (with effect in accordance with Sch. 10 para. 17(2)(3) of the amending Act) by Finance Act 2007 (c. 11), Sch. 10 para. 2(4)

F7 Words in s. 211(2A) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 83(3)

F8 S. 211(3) repealed (with effect in accordance with Sch. 29 paras. 5(4), 30(5), Sch. 40 Pt. II(12) Note 10 of the amending Act) by Finance Act 2000 (c. 17), Sch. 29 para. 30(4), Sch. 40 Pt. II(12) (with Sch. 29 para. 46(5))

F9 S. 211(4) inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 83(4)

Modifications etc. (not altering text)

C1 S. 211(1) modified (with effect in accordance with reg. 1 of the amending S.I.) by The Friendly Societies (Taxation of Transfers of Business) Regulations 1995 (S.I. 1995/171), regs. 1, 4(1)(2)(e)