Transfers of business may occur under Part 7 Financial Services and Markets Act 2000 (formerly Schedule 2C Insurance Companies Act 1992) or as part of a scheme or arrangement under Part 26 Companies Act 2006 (formerly section 425 Companies Act 1985).

Transfers of business by a mutual general insurer to another mutual general insurer will not generally give rise to any tax difficulties. The transfer will represent a disposal for the purposes of TCGA92, generally including a disposal of goodwill, and a related transaction for the purposes of the loan relationships and derivative contracts legislation.

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