The Insurance Companies (Amendment to Section 129 of, and Schedule 17 to, the Finance Act 2012) Regulations 2015

• Citation: S.I. 2015/1959
• Sections: 4

Section 1 Citation and commencement

These Regulations may be cited as the Insurance Companies (Amendment to Section 129 of, and Schedule 17 to, the Finance Act 2012) Regulations 2015 and come into force on 31st December 2015 and have effect in respect of transfers of business which occur on or after that date.

Section 2 Amendment of section 129(8) (intra-group transfers and demutualisation)

(1) Section 129(8) of the Finance Act 2012 is amended as follows.

(2) Insert “relevant” before “liabilities” in paragraph (a) and before “assets” in paragraph (b).

(3) For the words after paragraph (b), substitute—

In this paragraph, “relevant liabilities” and “relevant assets” means those liabilities and assets which give rise to amounts that are taken into account as part of the calculation under Chapter 6 of Part 2, and “relevant time” means the time immediately before the transfer (in the case of the transferor) and the time immediately after it (in the case of the transferee).

Section 3 Amendment of paragraph 13 of Schedule 17 (transitional provision)

(1) Paragraph 13 of Schedule 17 to the Finance Act 2012 is amended as follows.

(2) In sub-paragraph (4)(a), for “proportion” substitute “amount”.

(3) For sub-paragraph (5) substitute—

(5) In sub-paragraph (4)(a), “the appropriate amount” means the amount which fairly represents the value of the receipts or expenses attributable to the part of the business transferred immediately before the transfer.

Section 4 Insertion of paragraph 35A of Schedule 17

After paragraph 35 of Schedule 17 to the Finance Act 2012 (but within Part 2 of that Schedule) insert—

(35A)

(1) Sub-paragraph (2) applies to assets which by reason of paragraph 35 (or the previous application of this paragraph) are regarded for the purposes of this Part as assets forming part of the long-term business fixed capital of a company (“company A”).

(2) Where—

(a) company A transfers all of its basic life assurance and general annuity business and non-BLAGAB business to another company (“company B”), and

(b) the transfer is a relevant intra-group transfer,

for the purposes of this Part the assets form part of the long-term business fixed capital of company B instead of company A.

(3) “Relevant intra-group transfer” has the same meaning for the purposes of this paragraph as it has for the purposes of paragraph 13.