Part VI Companies, oil, insurance etc.
Chapter III Insurance
211BF3Transfers of assets to certain collective investment schemes
1
Subsection (2) applies if—
a
an asset of an insurance company is made subject to a collective investment scheme which is—
i
an authorised contractual scheme which is a co-ownership scheme, or
ii
a relevant offshore fund,
b
that is wholly in exchange for the company being issued with units in the scheme, and
c
the condition in subsection (3) is met.
2
For the purposes of corporation tax on chargeable gains, the company is to be treated—
a
as having disposed of the asset mentioned in subsection (1)(a) for a consideration of such amount as would secure that on the disposal neither a gain nor a loss would accrue to the company, and
b
as having acquired the units mentioned in subsection (1)(b) for a consideration of the same amount.
3
The condition is that—
a
immediately before the asset mentioned in subsection (1)(a) is made subject to the scheme, the asset was an asset held by the company for the purposes of its long-term business within one of the long-term business categories, and
b
immediately after the asset is made subject to the scheme, the units mentioned in subsection (1)(b) are assets held by the company for the purposes of its long-term business within the same category.
4
For the purposes of subsection (3), a “long-term business category” is—
a
if the company is a UK life insurance company, a long-term business category set out in section 116(2) of the Finance Act 2012 (subject to section 116(3)), or
b
if the company is an overseas life insurance company, a UK long-term business category set out in section 117(2) of that Act (subject to section 117(3)).
5
In subsection (1), “relevant offshore fund” F2means an offshore fund that is a transparent fund within the meaning given by regulation 11 of the Offshore Funds (Tax) Regulations 2009.
F16
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