4For section 432 (and the italic cross-heading before it) substitute—
(1)This section applies in relation to an insurance company which carries on life assurance business (whether or not it also carries on insurance business of any other kind).
(2)Subject as follows, the profits of the life assurance business for any accounting period shall be charged to tax under the I minus E basis.
(3)Where in the case of an insurance company for an accounting period either—
(a)all of its life assurance business is reinsurance business and none of that business is of a type excluded from this subsection by regulations made by the Board, or
(b)all, or substantially all, of its life assurance business is gross roll-up business,
the profits of that business for the accounting period shall be charged to tax in accordance with Case I of Schedule D and not otherwise.
(4)Where—
(a)the profits of the life assurance business of an insurance company for any accounting period are charged to tax under the I minus E basis, and
(b)had those profits been charged to tax in accordance with Case I of Schedule D, a loss would have arisen to the company from that business for the period,
the loss (after being reduced in accordance with section 434A(2)(a)) may be set-off under section 393A or section 403(1).
(5)The application, in relation to the life assurance business of an insurance company, of any provision of Case I of Schedule D is not to be taken—
(a)to prevent the application of the I minus E basis in relation to that business of the company for any accounting period, or
(b)to affect the operation of the I minus E basis in relation to the that business of the company for any accounting period except as specifically provided by the Corporation Tax Acts.
(1)This section applies in relation to an insurance company which carries on life assurance business and insurance business of any other kind.
(2)For the purposes of the Corporation Tax Acts—
(a)the life assurance business, and
(b)the other insurance business,
are to be treated as separate businesses.
(3)The profits of the other insurance business shall be charged to tax under Case I of Schedule D as the profits of a separate trade.
(4)But subsection (3) above does not apply where that business is mutual business.
(5)As to the profits of the life assurance business, see section 431G.”