Finance Act 1998

Choice between different Cases of Schedule D U.K.

84 (1) This paragraph applies in the following cases. U.K.

(2) The first case is where amounts may be brought into charge to tax either—

(a) in computing profits chargeable to tax under Case I of Schedule D, or

(b) as amounts within Case III or V of that Schedule.

(3) The second case is where amounts may be brought into charge to tax either—

(a) in computing profits charged to tax under Case I of Schedule D, or

(b) for the purpose of applying the basis commonly called the I minus E basis under which a company carrying on life assurance business is charged to tax on that business otherwise than under Case I of Schedule D.

In paragraph (b) “life assurance business” includes annuity business within the meaning of Chapter I of Part XII of the Taxes Act 1988.

(4) Where this paragraph applies, the Inland Revenue may by notice require a company—

(a) to produce to them such documents in the company’s power or possession, and

(b) to provide them with such information, in such form,

as they may reasonably require for the purpose of determining which basis of charge is to be used for an accounting period.

The provisions of paragraphs 27 to 29 (notice to produce documents, etc. for purposes of enquiry: supplementary provisions and penalty) apply in relation to such a notice.

(5) A determination by the Inland Revenue under this paragraph is final and conclusive as to the basis of charge to be used for the accounting period concerned.