PART XII SPECIAL CLASSES OF COMPANIES AND BUSINESSES

C3C4C5CHAPTER I INSURANCE COMPANIES, UNDERWRITERS AND CAPITAL REDEMPTION BUSINESS

Annotations:
Modifications etc. (not altering text)
C3

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

C4

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))

F2Miscellaneous provisions relating to life assurance business

Annotations:
Amendments (Textual)
F2

Cross-heading before s. 434 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(4) (with Sch. 8 para. 55(2))

C2436F1Pension business: separate charge on profits.

1

M1Subject to the provisions of this section, profits arising to an insurance company from F3 . . . pension business shall be treated as income within Schedule D, and be chargeable under Case VI of that Schedule, and for that purpose—

a

F4that business shall be treated separately, and

C1b

subject to paragraph (a) above, and to subsection (3) below, the profits therefrom shall be computed in accordance with the provisions of this Act applicable to Case I of Schedule D.

2

Subsection (1) above shall not apply to an insurance company charged to corporation tax in accordance with the provisions applicable to Case I of Schedule D in respect of the profits of its ordinary life assurance business.

3

M2In making the computation referred to in subsection (1) above—

a

F5sections 82 and 83 of the Finance Act 1989 shall apply with the necessary modifications and in particular with the omission of all references to policy holders (other than holders of policies referable to pension business) F6and of the words “tax or” in section 82(1)(a);

F7aa

F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b

no deduction shall be allowed in respect of any expenses of management deductible under section 76; F8

c

there may be set off against the profits any loss, to be computed on the same basis as the profits, which has arisen from pension business F9 . . .in any previous accounting period or year of assessment;

d

where the computation in question is of profits arising to an insurance company from pension business—

F10i

group income so far as referable to pension business shall be deducted from the receipts to be taken into account,

F11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .and

e

distributions which are not qualifying distributions shall not be taken into account where the computation in question is of the profits arising to an insurance company or overseas life insurance company from F12 . . . pension business.

4

M3Section 396 shall not be taken to apply to a loss incurred by a company on its F13 . . . pension business.

5

M4Nothing in section 128 or 399(1) shall affect the operation of this section.