Capital Allowances Act 2001

255 Apportionment of allowances and charges U.K.

[F1 (1) Except where subsection (3) applies, any allowance to which the company is entitled, and any charge to which it is liable, for a chargeable period in respect of a management asset must be apportioned between basic life assurance and general annuity business, gross roll-up business and PHI business in accordance with subsections (1A) and (1B).]

[F1 (1A) The allowance or charge is to be apportioned to a category of business using the formula—

where—

• A is the amount of the allowance or charge,

• B is the mean of the opening and closing liabilities of that category of business, and

• C is the mean of the opening and closing liabilities of all the categories of business mentioned in subsection (1) which are carried on by the company.

(1B) If C is nil or below nil, the allowance or charge to be apportioned to a category of business is such as is just and reasonable.]

F2 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) If—

(a) the company is charged to tax under [F3 section 436A of ICTA (gross roll-up business)], and

(b) the management asset in respect of which it is entitled to an allowance or liable to a charge for a chargeable period is [F4 held for the purposes of a permanent establishment outside the United Kingdom at or through which the company carries on gross roll-up business],

the allowance or charge must be allocated (without any apportionment) to that business.

Textual Amendments

F1 S. 255(1)-(1B) substituted for s. 255(1)(1A) (with effect in accordance with s. 38(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 7 para. 69(2) (with Sch. 7 Pt. 2)

F2 S. 255(2) repealed (with effect in accordance with s. 38(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 7 para. 69(3), Sch. 27 Pt. 2(7) (with Sch. 7 Pt. 2)

F3 Words in s. 255(3)(a) substituted (with effect in accordance with s. 38(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 7 para. 69(4)(a) (with Sch. 7 Pt. 2)

F4 Words in s. 255(3)(b) substituted (with effect in accordance with s. 38(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 7 para. 69(4)(b) (with Sch. 7 Pt. 2)

Modifications etc. (not altering text)

C10 S. 255 modified (with effect in accordance with reg. 1(2)(3) of the amending S.I.) by The Insurance Companies (Tax Exempt Business) Regulations 2007 (S.I. 2007/2145), regs. 1(1), 15

C11 S. 255 modified (with effect in accordance with reg. 1 of the amending S.I.) by The Overseas Life Insurance Companies Regulations 2006 (S.I. 2006/3271), regs. 1, 36 (as amended (with effect in accordance with reg. 1(2) of the amending S.I.) by S.I. 2007/2146, regs. 1(1), 21)

C12 S. 255 modified by The Friendly Societies (Modification of the Corporation Tax Acts) Regulations 2005 (S.I. 2005/2014), reg. 43A (as inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by S.I. 2007/2134, regs. 1(1), 33) and amended (12.8.2008) by S.I. 2008/1937, regs. 1(1), 13)