100 Income from investments attributable to BLAGAB, etc.U.K.
(1)The following section shall be inserted after section 444D of the Taxes Act 1988—
“444E Income from investments attributable to BLAGAB, etc.
(1)In computing the income from the investments of an overseas life insurance company attributable to the basic life assurance and general annuity business of the branch or agency in the United Kingdom through which the company carries on life assurance business, any interest, dividends and other payments whatsoever to which section 48 or 123(4) extends shall be included notwithstanding the exemption from tax conferred by those sections.
(2)Where in computing the income referred to in subsection (1) above any interest on any securities issued by the Treasury is excluded by virtue of a condition of the issue of those securities regulating the treatment of the interest on them for tax purposes, the relief under section 76 shall be reduced so that it bears to the amount of relief which would be granted apart from this subsection the same proportion as the amount of that income excluding that interest bears to the amount of that income including that interest.”
(2)In section 475 of that Act (tax-free Treasury securities: exclusion of interest on borrowed money), in subsection (6)—
(a)for “445(8)(b)”, in each place where it occurs, there shall be substituted “ 444E(2) ”;
(b)for the words “of the life assurance fund”, in each place where they occur, there shall be substituted the words “ attributable to basic life assurance and general annuity business ”.
(3)This section shall apply in relation to accounting periods beginning after 31st December 1992.