SCHEDULES
SCHEDULE 7Insurance business: gross roll-up business etc
Part 2Transitional provisions
Introduction
F980
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Carry forward of unused pension business losses
F981
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Carry forward of unused non-pension business losses
F982
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F983
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“Section 432F(2) excesses”
F984
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1F7Losses transferred under section 444AZA
Sch. 7 para. 85 cross-heading substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 725(3) (with Sch. 2 Pts. 1, 2)
85
1
2
Where any F3 losses so treated would (assuming the transferor had continued to carry on the business transferred after the transfer) have been losses to which paragraph 81(1) would have applied, the amount of such losses to be treated as F4 losses of the transferee in any period of account must not exceed—
where—
“GRBP” has the same meaning as in section 444AZA(2) of ICTA,
“PBTL” is the mean of the opening and closing liabilities of the transferred pension business for the period of account, and
“GRBTL” is the mean of the opening and closing liabilities of the transferred gross roll-up business for the period of account.
F8Losses transferred under section 444AZB
Sch. 7 para. 86 cross-heading substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 725(5) (with Sch. 2 Pts. 1, 2)
86
1
This paragraph applies where section 444AZB of ICTA has effect in relation to a transferee and the circumstances specified in sub-paragraph (2) or (3) below apply.
2
The circumstances are that—
a
the profits of the life assurance business of the transferee for the period of account immediately preceding the first period of account beginning on or after 1st January 2007 were chargeable to tax in accordance with Case I of Schedule D by virtue of section 439A of ICTA, and
b
in that period, the transferee carried on pension business.
3
The circumstances are that—
a
paragraph 29 of Schedule 8 applies in relation to the transferee, and
b
the transferee has an unused pension business loss within the meaning given by paragraph 81(4).
4
The appropriate fraction of any amount treated by virtue of section 444AZB(2) of ICTA as a loss of the transferee (a “F5gross roll-up business loss”) available to be set off against profits chargeable under section 436A of ICTA is to be treated for the purposes of paragraph 81 as an unused pension business loss.
5
The relevant fraction of any F6gross roll-up business loss is to be treated for the purposes of paragraph 82 as an unused non-pension business loss.
6
In this paragraph “the appropriate fraction”, in relation to a period of account, is—
where—
“PBTL” is the mean of the opening and closing liabilities of the transferred pension business for the period of account, and
“TL” is the mean of the opening and closing liabilities of the transferred life assurance business for the period of account.
7
In this paragraph the “the relevant fraction”, in relation to a period of account, is—
where—
“NPBTL” is the mean of the opening and closing liabilities of the transferred gross roll-up business which is not pension business for the period of account, and
“TL” is the mean of the opening and closing liabilities of the transferred life assurance business for the period of account.
Sch. 7 paras 85, 86 and cross-headings added (with effect in accordance with art. 1(5) of the amending S.I.) by The Insurance Business Transfer Schemes (Amendment of the Corporation Tax Acts) Order 2008 (S.I. 2008/381), arts. 1(1), 30