SCHEDULES

SCHEDULE 12 Leasing arrangements: finance leases and loans

Part III Insurance companies

Accounting purposes

F418

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Companies carrying on life assurance business

19

F51

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F52

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F53

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

Where—

a

under paragraph 5 or 13 above the company is treated for tax purposes as if in a period of account it had been entitled to, and there had arisen to it, any rent from the lease, and

b

the leased asset is an asset of the company’s F1long-term insurance fund or is linked to any category of insurance business, and

c

any question arises for the purposes of the Corporation Tax Acts as to the extent to which that rent is referable to any category of the company’s F2long-term business,

section 432A of the Taxes Act 1988 (apportionment of insurance companies’ income) shall have effect in relation to the rent as it has effect in relation to the income arising from an asset.

F35

In this paragraph “life assurance business” has the same meaning as in Chapter I of Part XII of the Taxes Act 1988.