Income and Corporation Taxes Act 1988

Yn ddilys o 27/12/2007

Modification of section 76 (expenses of insurance companies) U.K.

3 (1) Modify section 76 (expenses of insurance companies) as follows.

(2) In subsection (3) for the words from “means” to the end substitute—

“means—

(a) in the case of a company preparing IAD accounts, expenses included in item II.8 or 9(a) of the long-term business technical account, and

(b) in the case of a company preparing IAS accounts, such of the expenses included in the income statement in the IAS accounts as are equivalent to expenses that would be included in item II.8 or 9(a) of the long-term business technical account in IAD accounts,

but does not include any of the amounts falling within subsection (4), (5) or (6) below.”.

(4) In subsection (7)—

(a) omit Step 6;

(b) in Step 7—

(i) in paragraph (a) for “Subtotal 3” substitute “ Subtotal 2 ”;

(ii) for “Subtotal 4” substitute “ the expenses deduction ”;

(c) omit Step 8.

(5) In subsection (8) omit paragraphs (b) and (c).

(6) In subsection (12)(a) for “Step 8” insert “ Step 7 ”.

(7) In subsection (15) after the definition of “expenses payable” insert—

““long-term business technical account” means the technical account for life-assurance business included in the IAD accounts, or where the technical account included in the IAD accounts for non-life-insurance business of the company is used for all business, such part of that account as relates to the long-term business of the company;”.