Capital Allowances Act 2001

256 Different giving effect rules for different categories of business U.K.

(1) Subsection (2) applies if a company—

(a) carries on basic life assurance and general annuity business, and

[F1 (b) is charged to tax under the I minus E basis in respect of its life assurance business.]

(2) If this subsection applies—

(a) any allowances (or parts of allowances) to which the company is entitled in respect of the basic life assurance and general annuity business are to be given effect by treating them as [F2 expenses payable which fall to brought into account at Step 3 in section 76(7)] of ICTA, and

(b) any charges (or parts of charges) to which the company is liable in respect of that business are to be given effect by treating the amount of the charges (or parts of charges) as income under Case VI of Schedule D for the chargeable period in question.

(3) Subsection (4) applies if, for a chargeable period, a company is charged to tax under [F3 section 436A of ICTA (gross roll-up business)].

(4) If this subsection applies, then, for the purpose of calculating the [F4 profits] under Case VI of Schedule D for the chargeable period in question—

(a) any allowances (or parts of allowances) to which the company is entitled in respect of [F5 gross roll-up business] are to be given effect by treating them as an expense of [F5 its gross roll-up business], and

(b) any charges (or parts of charges) to which the company is liable in respect of [F6 gross roll-up business] are to be given effect by treating them as receipts of [F6 its gross roll-up business].

Textual Amendments

F1 S. 256(1)(b) substituted (with effect in accordance with s. 39(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 8 para. 23 (with Sch. 8 Pt. 2)

F2 Words in s. 256(2)(a) substituted (with effect in accordance with art. 1(2) of the amending S.I.) by Finance Act 2004, Sections 38 to 40 and 45 and Schedule 6 (Consequential Amendments of Enactments) Order 2004 (S.I. 2004/2310), art. 1(2), Sch. para. 55(2)

F3 Words in s. 256(3) substituted (with effect in accordance with s. 38(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 7 para. 70(2) (with Sch. 7 Pt. 2)

F4 Word in s. 256(4) substituted (with effect in accordance with s. 38(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 7 para. 70(3)(a) (with Sch. 7 Pt. 2)

F5 Words in s. 256(4)(a) substituted (with effect in accordance with s. 38(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 7 para. 70(3)(b) (with Sch. 7 Pt. 2)

F6 Words in s. 256(4)(b) substituted (with effect in accordance with s. 38(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 7 para. 70(3)(c) (with Sch. 7 Pt. 2)

Modifications etc. (not altering text)

C1 S. 256 modified (1.1.2002) by S.I. 1997/473, reg. 53C (as inserted by S.I. 2001/3975, reg. 8)

C2 S. 256 modified (with effect in accordance with reg. 1(2) of the commencing S.I.) by The Friendly Societies (Modification of the Corporation Tax Acts) Regulations 2005 (S.I. 2005/2014), regs. 1(1), 44