Corporation Tax Act 2009 section 337

Transfers of loans on insurance business transfers

Section 337 sets out the rules for when loan relationships are transferred between companies as part of insurance business transfers, ensuring continuity of tax treatment applies.

• Continuity of treatment applies where one company replaces another as a party to a loan relationship following an insurance business transfer
• Qualifying transfers include transfers of long-term insurance business under an insurance business transfer scheme and qualifying overseas transfers under the EU Solvency II Directive
• Continuity treatment is denied if the transferred loan asset changes its asset category as a result of the transfer — for example, moving from a long-term business category to a non-long-term business category
• Where an overseas life insurance company is involved, an asset is treated as remaining in the same category if it moves from one category to the corresponding equivalent category for the other type of company