SCHEDULE 12Tax relief for expenditure on research and development
Part 4Special provision for giving relief to insurance companies
Treated as large companies
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Where, in an accounting period, an insurance company (within the meaning of Chapter 1 of Part 12 of the Taxes Act 1988)—
(a)
carries on life assurance business, and
(b)
qualifies as a small or medium-sized enterprise,
F1the company does not qualify as a small or medium-sized enterprise for the purposes of Parts 1 to 3 of this Schedule or Schedule 20 to the Finance Act 2000.
Entitlement to relief in respect of “I minus E" basis
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(1)
This paragraph applies where for any accounting period F2an insurance company is charged to tax under the I minus E basis in respect of its life assurance business.
F3(2)
The provisions of Part 3 which allow a deduction in calculating the profits of a trade apply in relation to the company to treat amounts as expenses payable falling to be brought into account at Step 3 in section 76(7) of the Taxes Act 1988.
F4(3)
Part 3 of this Schedule has effect in relation to any gross roll-up business of the company as if the references to the trade carried on by the company were references to that business (and sub-paragraph (2) does not apply in relation to that business).
(4)
Subject to sub-paragraph (3), the provisions of Part 3 do not apply to allow any deduction in any computation of the profits of the company’s life assurance business made in accordance with the provisions of the Taxes Act 1988 applicable to Case I of Schedule D.