256 Different giving effect rules for different categories of businessU.K.
(1)Subsection (2) applies if a company—
(a)carries on basic life assurance and general annuity business, and
[F1(b)is charged to tax under the I minus E basis in respect of its life assurance business.]
(2)If this subsection applies—
(a)any allowances (or parts of allowances) to which the company is entitled in respect of the basic life assurance and general annuity business are to be given effect by treating them as [F2expenses payable which fall to brought into account at Step 3 in section 76(7)] of ICTA, and
(b)any charges (or parts of charges) to which the company is liable in respect of that business are to be given effect by treating the [F3company as receiving for the chargeable period in question an amount which is equal to the amount of the charges (or parts of charges) and to which the charge to corporation tax on income applies].
(3)Subsection (4) applies if, for a chargeable period, a company is charged to tax under [F4section 436A of ICTA (gross roll-up business)].
(4)If this subsection applies, then, for the purpose of calculating the [F5profits] [F6chargeable under section 436A of ICTA] for the chargeable period in question—
(a)any allowances (or parts of allowances) to which the company is entitled in respect of [F7gross roll-up business] are to be given effect by treating them as an expense of [F7its gross roll-up business], and
(b)any charges (or parts of charges) to which the company is liable in respect of [F8gross roll-up business] are to be given effect by treating them as receipts of [F8its gross roll-up business].
Textual Amendments
F1S. 256(1)(b) substituted (with effect in accordance with s. 39(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 8 para. 23 (with Sch. 8 Pt. 2)
F2Words in s. 256(2)(a) substituted (with effect in accordance with art. 1(2) of the amending S.I.) by Finance Act 2004, Sections 38 to 40 and 45 and Schedule 6 (Consequential Amendments of Enactments) Order 2004 (S.I. 2004/2310), art. 1(2), Sch. para. 55(2)
F3Words in s. 256(2)(b) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 492(2) (with Sch. 2 Pts. 1, 2)
F4Words in s. 256(3) substituted (with effect in accordance with s. 38(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 7 para. 70(2) (with Sch. 7 Pt. 2)
F5Word in s. 256(4) substituted (with effect in accordance with s. 38(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 7 para. 70(3)(a) (with Sch. 7 Pt. 2)
F6Words in s. 256(4) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 492(3) (with Sch. 2 Pts. 1, 2)
F7Words in s. 256(4)(a) substituted (with effect in accordance with s. 38(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 7 para. 70(3)(b) (with Sch. 7 Pt. 2)
F8Words in s. 256(4)(b) substituted (with effect in accordance with s. 38(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 7 para. 70(3)(c) (with Sch. 7 Pt. 2)
Modifications etc. (not altering text)
C1S. 256 modified (1.1.2002) by S.I. 1997/473, reg. 53C (as inserted by S.I. 2001/3975, reg. 8)
C2S. 256 modified (with effect in accordance with reg. 1(2) of the commencing S.I.) by The Friendly Societies (Modification of the Corporation Tax Acts) Regulations 2005 (S.I. 2005/2014), regs. 1(1), 44