Part 2U.K. Plant and machinery allowances

Modifications etc. (not altering text)

C2Pt. 2 modified (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 10 para. 12 (with Sch. 10 para. 17(1)); S.I. 2003/120, art. 2, Sch. (with arts. 3 4) (as amended (20.2.2003) by S.I. 2003/333, art. 14)

C3 Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 10, 22 (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1

C4 Pt. 2 modified (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 9(2), 21(2) (with s. 38(2)); S.I. 2004/2575, art. 2(1) , Sch. 1

C5 Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 4 para. 4 ; S.I. 2004/2575 , art. 2(1) , Sch. 1

C6Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 19

C7Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 35

C8Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 paras. 36, 37

C9Pt. 2 modified (21.7.2009) by Finance Act 2009 (c. 10), s. 24

Chapter 19U.K. Giving effect to allowances and charges

Life assurance businessU.K.

255 Apportionment of allowances and chargesU.K.

[F1(1)Except where subsection (3) applies, any allowance to which the company is entitled, and any charge to which it is liable, for a chargeable period in respect of a management asset must be apportioned between basic life assurance and general annuity business, gross roll-up business and PHI business in accordance with subsections (1A) and (1B).]

[F1(1A)The allowance or charge is to be apportioned to a category of business using the formula—

where—

A is the amount of the allowance or charge,
B is the mean of the opening and closing liabilities of that category of business, and
C is the mean of the opening and closing liabilities of all the categories of business mentioned in subsection (1) which are carried on by the company.

(1B)If C is nil or below nil, the allowance or charge to be apportioned to a category of business is such as is just and reasonable.]

F2(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)If—

(a)the company is charged to tax under [F3section 436A of ICTA (gross roll-up business)], and

(b)the management asset in respect of which it is entitled to an allowance or liable to a charge for a chargeable period is [F4held for the purposes of a permanent establishment outside the United Kingdom at or through which the company carries on gross roll-up business],

the allowance or charge must be allocated (without any apportionment) to that business.

Textual Amendments

F1S. 255(1)-(1B) substituted for s. 255(1)(1A) (with effect in accordance with s. 38(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 7 para. 69(2) (with Sch. 7 Pt. 2)

F2S. 255(2) repealed (with effect in accordance with s. 38(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 7 para. 69(3), Sch. 27 Pt. 2(7) (with Sch. 7 Pt. 2)

F3Words in s. 255(3)(a) substituted (with effect in accordance with s. 38(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 7 para. 69(4)(a) (with Sch. 7 Pt. 2)

F4Words in s. 255(3)(b) substituted (with effect in accordance with s. 38(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 7 para. 69(4)(b) (with Sch. 7 Pt. 2)

Modifications etc. (not altering text)

C10S. 255 modified (with effect in accordance with reg. 1(2)(3) of the amending S.I.) by The Insurance Companies (Tax Exempt Business) Regulations 2007 (S.I. 2007/2145), regs. 1(1), 15

C11S. 255 modified (with effect in accordance with reg. 1 of the amending S.I.) by The Overseas Life Insurance Companies Regulations 2006 (S.I. 2006/3271), regs. 1, 36 (as amended (with effect in accordance with reg. 1(2) of the amending S.I.) by S.I. 2007/2146, regs. 1(1), 21)

C12S. 255 modified by The Friendly Societies (Modification of the Corporation Tax Acts) Regulations 2005 (S.I. 2005/2014), reg. 43A (as inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by S.I. 2007/2134, regs. 1(1), 33) and amended (12.8.2008) by S.I. 2008/1937, regs. 1(1), 13)