PART XII SPECIAL CLASSES OF COMPANIES AND BUSINESSES
C3C4C5CHAPTER I INSURANCE COMPANIES, UNDERWRITERS AND CAPITAL REDEMPTION BUSINESS
Pt. XII Chapter I (ss. 431-458) applied (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 212(7)(b), 289 (with ss. 60, 101(1), 171, 201(3))
Pt. 12 Ch. 1 modified (s. 431AB treated as inserted) by The Friendly Societies (Modification of the Corporation Tax Acts) Regulations 1997 (S.I. 1997/473), reg. 7A (as inserted (8.4.2004 with effect in accordance with reg. 1 of the amending S.I.) by The Friendly Societies (Modification of the Corporation Tax Acts) (Amendment) Regulations 2004 (S.I. 2004/822), reg. 7)
F1Separation of different categories of business
Cross-heading before s. 432 inserted (with effect in accordance with Sch. 8 para. 57(1) of the amending Act) by Finance Act 1995 (c. 4), Sch. 8 para. 51(2) (with Sch. 8 para. 55(2))
C1432C [F2Section 432B apportionment: income of non-participating funds.
C21
To the extent that the amount brought into account as income is attributable to assets F3linked to F4pension business, life reinsurance business, basic life assurance and general annuity business or long term business other than life assurance business, it shall be referable to the category of business concerned.
2
To the extent that that amount is attributable to assets of the overseas life assurance fund F5or land in the United Kingdom linked to overseas life assurance business, it shall be referable to overseas life assurance business.
3
There shall be referable to any category of business (apart from overseas life assurance business) the relevant fraction of so much of the amount brought into account as income as is not directly referable to F6any category of business.
4
For the purposes of subsection (3) above “the relevant fraction”, in relation to a category of business, is the fraction of which—
a
the numerator is the mean of the opening and closing liabilities of the relevant business so far as referable to the category, reduced by the mean of the opening and closing values of any assets of the relevant business directly referable to the category; and
b
the denominator is the mean of the opening and closing liabilities of the relevant business, reduced by the mean of the opening and closing values of any assets of the relevant business directly referable to F7any category of business .
5
For the purposes of subsections (3) and (4) above—
a
F8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
the part of the amount brought into account as income which is directly referable to a category of business is the part referable to the category by virtue of subsection (1) above and assets are directly referable to a category of business if such part of the amount brought into account as income as is attributable to them is so referable.
F96
For the purposes of this section, where a company carries on overseas life assurance business “liabilities” does not include liabilities of that business.
Definitions in Pt. XII Chapter I (ss. 431-458) applied by Finance Act 1991 (c. 31, SIF 63:1), s. 48, Sch. 7 paras. 16(7), 18