Section 267A | Insurance companies: transfers of business. ^F1

(1)This section applies where there is a transfer of the whole or part of the long term business of an insurance company (“the transferor") to another company (“the transferee") in accordance with a scheme sanctioned by a court under section 49 of the Insurance Companies Act 1982.^F1

(2)Subject to subsection (3) below, where this section applies section 267 above shall not be prevented from having effect in relation to any asset included in the transfer by reason that—^F1

(a)the transfer is no part of a scheme of reconstruction or amalgamation,^F1

(b)the condition in paragraph (c) of subsection (1) of that section is not satisfied, or^F1

(c)the asset is within subsection (2) of that section;^F1

and where section 267 above applies by virtue of paragraph (a) above the references in subsection (3A) of that section to the reconstruction or amalgamation shall be construed as references to the transfer.

(3)Section 267 above shall not have effect in relation to an asset by virtue of subsection (2) above unless—^F1

(a)any gain accruing to the transferor—^F1

(i)on the disposal of the asset in accordance with the scheme, or^F1

(ii)where that disposal occurs after the transfer of business has taken place, on a disposal of the asset immediately before that transfer, and^F1

(b)any gain accruing to the transferee on a disposal of the asset immediately after its acquisition in accordance with the scheme,^F1

would be a chargeable gain which would form part of its profits for corporation tax purposes (and would not be a gain on which, under any double taxation arrangements having effect by virtue of section 788 of the Taxes Act 1988, it would not be liable to tax).