Finance Act 2007
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Change 1
SCHEDULE 9 Insurance companies: transfers etc
Section 40 Definition of “insurance business transfer scheme” 1 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) In consequence of sub-paragraph (1), omit— (a) the definition of “insurance business transfer scheme” in section 12(7B) of ICTA, (b) section 444AB(11) of that Act (as originally enacted), (c) in section 444AC(11) of that Act (as originally enacted), the definition of “insurance business transfer scheme”, (d) section 460(10B) of that Act, (e) the definition of “insurance business transfer scheme” in paragraph 12(9) of Schedule 9 to FA 1996, (f) section 560(5)(b) of CAA 2001, (g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) In section 66 of FA 2002 (election to continue postponement of mark to market)— (a) in subsection (4)(a), for “a transfer” substitute “ an insurance business transfer ”, (b) in subsection (5), omit the definition of “transfer scheme”, and (c) omit subsections (6) and (7). (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transfer schemes: expenses, losses etc 2 (1) Section 444A of ICTA (transfers of business: expenses, losses and section 432F(2) excesses) is amended as follows. (2) In subsection (1), omit “Subject to subsection (7) below,”. (3) Omit— (a) subsection (7) (section not to apply if transfer is not for bona fide commercial reasons or forms part of avoidance scheme), and (b) subsection (8) (clearance procedure as to non-application of subsection (7)). Transfer schemes: deemed periodical returns 3 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) In section 213(10) of TCGA 1992, for “before the transfer” substitute “ before the relevant transfer date (within the meaning of that section) ”. Transfer schemes: taxing the transferor Transferor's period of account including transfer Transfer schemes: taxing the transferee Repeal of section 444AD Transfer schemes: anti-avoidance Repeal of FA s.82C 9 In FA 1989, omit section 82C (relevant financial reinsurance contracts). Transfers: receipts to be taken into account 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transfers and demutualisations: losses where assets added to long-term insurance fund 11 (1) FA 1989 is amended as follows. (2) Omit— (a) in section 83, subsections (3) to (7) and, in subsection (8), the definitions of “add”, “demutualisation” and “total reinsurance” (which relate to losses where assets added to long-term insurance fund), (b) section 83AA (amounts added to long-term insurance fund in excess of loss), and (c) section 83AB (treatment of surplus where there is subsequent transfer from company etc). (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transfer schemes: old annuity contracts 13 (1) Paragraph 16 of Schedule 7 to FA 1991 (transitional relief for old general annuity contracts) is amended as follows. (2) In sub-paragraph (7), in the definition of “old annuity contract”, insert at the end “ (including one forming part of the business transferred to another insurance company by an insurance business transfer scheme) ”. (3) After that sub-paragraph insert— (8) Where— (a) business is transferred to an insurance company by an insurance business transfer scheme during an accounting period of the company, and (b) the business transferred consists of or includes old annuity contracts (“the transferred contracts”), the reference in the definition of R1 in sub-paragraph (2) above to the company's opening liabilities for the accounting period is, in relation to the transferred contracts, a reference to the company's liabilities in respect of the transferred contracts immediately after the transfer. Transfer schemes: no gain/no loss 14 (1) TCGA 1992 is amended as follows. (2) In section 211 (application of section 139), for subsections (2) and (2A) substitute— (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 of the transferor's long-term insurance fund, and (b) immediately after they are so acquired are assets of the transferee's long-term insurance fund, 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. (3) Subsection (2) above is subject to section 212. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transfer schemes: old reinsurance business 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Power to amend transfer provisions 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Commencement 17 (1) The amendments made by paragraphs 1 to 3 and 13 to 15 have effect in relation to periods of account beginning on or after 1st January 2007. (2) The amendments made by paragraphs 4, 6 to 10(5), 11 and 12 have effect in accordance with provision made by an order made by the Treasury. (3) But the amendments made by paragraphs 11 and 12 also have effect (a) in relation to periods of account beginning on or after 1st January 2007 where the transfer of business or demutualisation concerned took place before 21st March 2007 and (b) in relation to periods of account ending after 30 June 2008 where the transfer of business or demutualisation concerned took place on or after 21 March 2007 and before 1 July 2008. (4) The amendment made by paragraph 5 has effect in relation to transfers of business with a transfer date after 21st March 2007. (4A) The amendment made by paragraph 9 has effect in relation to contracts entered into in a period of account beginning on or after 1 January 2008. (5) The amendment made by paragraph 10(2) has effect in relation to transfers taking place on or after 6th December 2006. (6) The amendments made by paragraph 10(3) and (4) have effect in relation to assets transferred on or after 1 January 2008.
SCHEDULE 9 Insurance companies: transfers etc
Section 40 Definition of “insurance business transfer scheme” 1 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) In consequence of sub-paragraph (1), omit— (a) the definition of “insurance business transfer scheme” in section 12(7B) of ICTA, (b) section 444AB(11) of that Act (as originally enacted), (c) in section 444AC(11) of that Act (as originally enacted), the definition of “insurance business transfer scheme”, (d) section 460(10B) of that Act, (e) the definition of “insurance business transfer scheme” in paragraph 12(9) of Schedule 9 to FA 1996, (f) section 560(5)(b) of CAA 2001, (g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) In section 66 of FA 2002 (election to continue postponement of mark to market)— (a) in subsection (4)(a), for “a transfer” substitute “ an insurance business transfer ”, (b) in subsection (5), omit the definition of “transfer scheme”, and (c) omit subsections (6) and (7). (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transfer schemes: expenses, losses etc 2 (1) Section 444A of ICTA (transfers of business: expenses, losses and section 432F(2) excesses) is amended as follows. (2) In subsection (1), omit “Subject to subsection (7) below,”. (3) Omit— (a) subsection (7) (section not to apply if transfer is not for bona fide commercial reasons or forms part of avoidance scheme), and (b) subsection (8) (clearance procedure as to non-application of subsection (7)). Transfer schemes: deemed periodical returns 3 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) In section 213(10) of TCGA 1992, for “before the transfer” substitute “ before the relevant transfer date (within the meaning of that section) ”. Transfer schemes: taxing the transferor Transferor's period of account including transfer Transfer schemes: taxing the transferee Repeal of section 444AD Transfer schemes: anti-avoidance Repeal of FA s.82C 9 In FA 1989, omit section 82C (relevant financial reinsurance contracts). Transfers: receipts to be taken into account 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transfers and demutualisations: losses where assets added to long-term insurance fund 11 (1) FA 1989 is amended as follows. (2) Omit— (a) in section 83, subsections (3) to (7) and, in subsection (8), the definitions of “add”, “demutualisation” and “total reinsurance” (which relate to losses where assets added to long-term insurance fund), (b) section 83AA (amounts added to long-term insurance fund in excess of loss), and (c) section 83AB (treatment of surplus where there is subsequent transfer from company etc). (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transfer schemes: old annuity contracts 13 (1) Paragraph 16 of Schedule 7 to FA 1991 (transitional relief for old general annuity contracts) is amended as follows. (2) In sub-paragraph (7), in the definition of “old annuity contract”, insert at the end “ (including one forming part of the business transferred to another insurance company by an insurance business transfer scheme) ”. (3) After that sub-paragraph insert— (8) Where— (a) business is transferred to an insurance company by an insurance business transfer scheme during an accounting period of the company, and (b) the business transferred consists of or includes old annuity contracts (“the transferred contracts”), the reference in the definition of R1 in sub-paragraph (2) above to the company's opening liabilities for the accounting period is, in relation to the transferred contracts, a reference to the company's liabilities in respect of the transferred contracts immediately after the transfer. Transfer schemes: no gain/no loss 14 (1) TCGA 1992 is amended as follows. (2) In section 211 (application of section 139), for subsections (2) and (2A) substitute— (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 of the transferor's long-term insurance fund, and (b) immediately after they are so acquired are assets of the transferee's long-term insurance fund, 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. (3) Subsection (2) above is subject to section 212. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transfer schemes: old reinsurance business 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Power to amend transfer provisions 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Commencement 17 (1) The amendments made by paragraphs 1 to 3 and 13 to 15 have effect in relation to periods of account beginning on or after 1st January 2007. (2) The amendments made by paragraphs 4, 6 to 10(5), 11 and 12 have effect in accordance with provision made by an order made by the Treasury. (3) But the amendments made by paragraphs 11 and 12 also have effect (a) in relation to periods of account beginning on or after 1st January 2007 where the transfer of business or demutualisation concerned took place before 21st March 2007 and (b) in relation to periods of account ending after 30 June 2008 where the transfer of business or demutualisation concerned took place on or after 21 March 2007 and before 1 July 2008. (4) The amendment made by paragraph 5 has effect in relation to transfers of business with a transfer date after 21st March 2007. (4A) The amendment made by paragraph 9 has effect in relation to contracts entered into in a period of account beginning on or after 1 January 2008. (5) The amendment made by paragraph 10(2) has effect in relation to transfers taking place on or after 6th December 2006. (6) The amendments made by paragraph 10(3) and (4) have effect in relation to assets transferred on or after 1 January 2008.
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