21(1)In section 434A of ICTA (computation of losses and limitation on relief), insert at the end—U.K.
“(4)For the purposes of section 403, where the surrendering company is an insurance company which is charged to tax under the I minus E basis in respect of its life assurance business for the surrender period, the company's gross profits of that period do not include its relevant profits (within the meaning of section 88 of the Finance Act 1989) for that period; and expressions used in this subsection and section 403 have the same meaning here as there.”
(2)The amendment made by sub-paragraph (1) has effect in relation to accounting periods beginning on or after 1 January 2008.