UK tax help

Life module — Part VII transfers

This section is designed to deal with the transfer in or out of a Life insurance business under Part VII of the Financial Services & Markets Act 2000.

BLAGAB acquisition expenses spreading

Where there's a business transferred out in the period, tick
Transfer out in the period
 to display entries for the transferee name and additional columns. Use these columns to enter, for each row, the amount of cost and residue transferred out and the date of transfer. If the date of transfer isn't the same as the period end date, the basic life assurance and general annuity business (BLAGAB) acquisition expenses allowed in the period will be pro-rated.

BLAGAB acquisition expenses transferred in

For a business transferred in, enter the name of the transferor and the date of transfer in at the beginning of this sheet. If the date of transfer is within the current accounting period and different to the period end date, the amount of BLAGAB acquisition expenses allowed in the period will be pro-rated accordingly.

Deemed disposals

For a business transferred out in the period, tick
Transfer out in the period
 to display entries for the transferee name and additional columns. For each row, enter the amount of gain / loss, residue transferred out, and transfer date. If the transfer date is different to the period end date, the amount of taxable gain or allowable loss for the period will be pro-rated.

Disposals transferred in

For a business transferred in, enter the name of the transferor and the date of transfer in at the beginning of this sheet. If the date of transfer is within the current accounting period and is not the same as the period end date, the amount of taxable gain or allowable loss for the period will be pro-rated.

Spreading of IFRS transitional amounts

For a transfer out, insert a new row in the table for the transfer out. Enter the date of transfer out, the transitional amount, and residue transferred out into this row. The row calculates an adjustment to the overall taxable or allowable amount that the transferee can claim for the period.
For a transfer in, insert a row for each amount transferred, then enter the date of transfer, the transitional amount, and residue transferred. If the transfer date is different to the period end date, the taxable or allowable amount for the period will be pro-rated.

Other sheets

Where other amounts have been transferred in or out of a Life company, the relevant sheets should have a transfer row or equivalent to let you enter the amount being transferred in or out.
Refer to the Transfer of trade article for how to deal with the transfer in or out of fixed assets, capital allowances, and trade losses.

This article applies to:

  • PRODUCT: ONESOURCE Corporate Tax

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