8(1)In section 76(1) of the Taxes Act 1988 (expenses of management), for the words after paragraph (d) substitute—U.K.
“(e)expenses of management may be deducted for any accounting period only from so much of the income and gains of that accounting period referable to basic life assurance and general annuity business as remains after any deduction falling to be made by virtue of paragraph 4(2) of Schedule 11 to the Finance Act 1996 (non-trading deficits on loan relationships).”.
(2)In section 87(6)(b) of the Finance Act 1989 (c. 26) (management expenses), omit “, disregarding section 76(1)(e) of that Act (as set out in subsection (2) above),”.
(3)In paragraph 4 of Schedule 11 to the Finance Act 1996 (c. 8) (non-trading deficits on loan relationships)—
(a)in sub-paragraph (2), omit “net” (in both places), and
(b)in sub-paragraph (16), omit the definition of “net income and gains”.
(4)This paragraph has effect for accounting periods beginning on or after 1st January 2003 except those ending before 9th April 2003.