The rules in this division apply for accounting periods beginning on or after 1 January 2013. For accounting periods beginning before 1 January 2013 see Division D7.5.
It has always been a feature of the tax rules for transfers of insurance business to have an associated anti-avoidance provision to allow HMRC to take appropriate action against transactions that are seen as tax motivated.
Thus there is a targeted anti-avoidance rule that potentially applies whenever there is a transfer of long-term business (whether BLAGAB, non-BLAGAB business or both) on or after 1 January 2013. The rule operates whether the whole or part of the transferor's business is subject to the scheme1.
In any such circumstance the anti-avoidance rule will apply if the main purpose, or one of the main purposes, of a company entering into any arrangement included in insurance business transfer arrangements is an unallowable