[F2438C Determination of policy holders’ share for purposes of s.438BU.K.
(1)For the purposes of section 438B the policy holders’ share of any income or chargeable gains to which subsection (1) of that section applies is what remains after deducting the shareholders’ share.
(2)The shareholders’ share is found by applying to the whole the fraction—
where—
A is the amount of the profits of the company for the period which are chargeable to tax under section 436; and
B is an amount equal to the excess of—
(a) the amount taken into account as receipts of the company in computing those profits (apart from premiums and sums received by virtue of a claim under a reinsurance contract), over
(b) the amounts taken into account as expenses in computing those profits.
(3)Where there is no such excess as is mentioned in subsection (2) above, or where the profits are greater than any excess, the whole of the income or gains is treated as the shareholders’ share.
(4)Subject to that, where there are no profits none of the income or gains is treated as the shareholders’ share.]
Textual Amendments
F2Ss. 438B, 438C inserted (6.4.2001) by Finance Act 2001 (c. 9), s. 76, Sch. 25 para. 5