CA15500 - General: successions: transfer of insurance company business

CAA01/S560

There is legislation in Section 560 about transfers of insurance business. Where it applies there are no balancing adjustments for the transferor and the transferee inherits the transferor’s capital allowances position.

The legislation applies where the whole or part of the business of one insurance company is transferred to another and the transfer is

• in accordance with an insurance business transfer scheme to transfer business which consists of the effecting or carrying out of contracts of long-term insurance, or
• a qualifying overseas transfer, meaning so much of a transfer of the whole or any part of a business of an overseas life insurance company carried on through a permanent establishment in the United Kingdom as takes place in accordance with an authorisation granted outside the UK for the purposes of Article 39 of Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking up and pursuit of the business of Insurance and Reinsurance (Solvency II).

The legislation does not apply to an asset transferred to a non-resident company unless the asset is used for the part of its business carried on through a UK branch or agency.

It does not apply where the EU transfers legislation applies CA15560.