Subsection (2) applies if—
an asset of an insurance company is made subject to a collective investment scheme which is—
an authorised contractual scheme which is a co-ownership scheme, ...
a Reserved Investor Fund (Contractual Scheme), or
a relevant offshore fund,
that is wholly in exchange for the company being issued with units in the scheme, and
the condition in subsection (3) is met.
For the purposes of corporation tax on chargeable gains, the company is to be treated—
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
as having acquired the units mentioned in subsection (1)(b) for a consideration of the same amount.
The condition is that—
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
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.
For the purposes of subsection (3), a "long-term business category" is—
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
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)).
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.
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