SCHEDULES
SCHEDULE 18Interest rate and currency contracts: insurance and mutual trading companies
Non-life mutual business
3
1
Subject to sub-paragraph (2) below, sub-paragraph (3) below applies where a qualifying contract was at any time in an accounting period of a mutual trading company held by the company for the purposes of any non-life mutual business carried on by it.
2
Where the qualifying contract was held partly for the purposes of the non-life mutual business and partly for other purposes—
a
the profit or loss on the contract for the period shall be apportioned on a just and reasonable basis, and
b
any reference in sub-paragraph (3) below to that profit or loss shall be construed as a reference to so much of it as is referable to the non-life mutual business.
3
Notwithstanding anything in section 159 of this Act—
a
no part of the profit or loss on the contract for the period shall be treated for the purposes of the Tax Acts as a profit or loss of a trade or part of a trade, and
b
accordingly, the whole of that profit or loss shall be treated for the purposes of section 160 of this Act as a non-trading profit or loss.