SCHEDULES
SCHEDULE 8Insurance companies: basis of taxation etc
Part 1Amendments
2Income and Corporation Taxes Act 1988 (c. 1)
1
Section 76 (expenses of insurance companies) is amended as follows.
2
In subsection (1)(b), for “not charged to tax in respect of that business under Case I of Schedule D” substitute “charged to tax in respect of that business under the I minus E basis”.
3
In subsection (7)—
a
in Step 8, for “basic” substitute “expenses”, and
b
omit Steps 9 and 10.
4
Omit subsections (10) and (11).
5
In subsection (12)—
a
for “Step 10” substitute “Step 8”, and
b
after “next accounting period” insert “for which the company is charged to tax in respect of its life assurance business under the I minus E basis”.
6
For subsection (13) substitute—
13
Where for any accounting period excess adjusted Case I profits are charged to tax under section 85A of the Finance Act 1989, an amount equal to the profits is to be carried forward to the next accounting period for which the company is charged to tax in respect of its life assurance business under the I minus E basis and brought into account for that period in accordance with Step 7.