Section 211B — Taxation of Chargeable Gains Act 1992: Transfers of assets to certain collective investment schemes

Transfers of assets to certain collective investment schemes 211B 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, ... ia a Reserved Investor Fund (Contractual 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” means an offshore fund that is a transparent fund within the meaning given by regulation 11 of the Offshore Funds (Tax) Regulations 2009. 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .