Capital Allowances Act 2001 section 560 (as modified by Schedule 3 paragraph 111)

Transfer of insurance company business

Section 560, as modified by Schedule 3 paragraph 111, deals with the capital allowances treatment of assets transferred as part of insurance company business transfers that were sanctioned or authorised before 1st July 1994.

• This provision applies where assets are transferred as part of, or in connection with, a transfer of the whole or part of the long-term business of an insurance company to another company.
• The transfer must have been carried out under a scheme sanctioned by a court under section 49 of the Insurance Companies Act 1982.
• The modified version of section 560 only applies to transfers that were sanctioned or authorised before 1st July 1994.
• For these pre-July 1994 transfers, subsection (2) of section 560 is omitted, meaning the provision operates with a narrower scope reflecting the legislation in force at the time.