SCHEDULES

SCHEDULE 12 U.K. Tax relief for expenditure on research and development

Modifications etc. (not altering text)

C1 Sch. 12 modified (with effect as specified in art. 2 of the commencing S.I. of the commencing S.I.) by Finance Act 2004 (c. 12), s. 53(2)(6); S.I. 2004/3268, art. 2

Part 4 U.K. Special provision for giving relief to insurance companies

Treated as large companies U.K.

12 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,

[F1 the 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.]

Textual Amendments

F1 Words in Sch. 12 para. 12 substituted (21.7.2008) by Finance Act 2008 (c. 9), Sch. 17 para. 36

Entitlement to relief in respect of “I minus E" basis U.K.

13 (1) This paragraph applies where for any accounting period [F2 an 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.

Textual Amendments

F2 Words in Sch. 12 para. 13(1) substituted (with effect in accordance with s. 39(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 8 para. 26 (with Sch. 8 Pt. 2)

F3 Sch. 12 para. 13(2) substituted (with effect in accordance with art. 1(2) of the amending S.I.) by The Finance Act 2004, Sections 38 to 40 and 45 and Schedule 6 (Consequential Amendment of Enactments) Order 2004 (S.I. 2004/2310), art. 1(2), Sch. para. 64(2)

F4 Sch. 12 para. 13(3) substituted (with effect in accordance with s. 38(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 7 para. 74(2) (with Sch. 7 Pt. 2)