Corporation Tax Act 2009

Introduction U.K.

386 Overview of Chapter U.K.

(1) This Chapter contains special rules about the treatment of the loan relationships of insurance companies.

(2) In particular, it—

(a) provides for special rules to apply [F1 for the purposes of the I - E rules] in relation to an insurance company's non-trading deficits referable to BLAGAB instead of those in Chapter 16 (see sections 387 to 391), [F1 and]

(b) excludes some loan relationships of corporate members of Lloyd's from this Part (see section 392), F2 ...

F2 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) For further special rules affecting insurance companies, see—

(a) section 298(3) (under which activities carried on by a company in the course of mutual insurance business which is not life assurance business F3 ... are treated as not constituting a trade or part of a trade) [F4 and section 88 of FA 2012 (equivalent rule for activities carried on in the course of BLAGAB)],

(b) Chapter 4 (continuity of treatment on transfers within groups or on reorganisations), and, in particular, sections 335(1) and (2), 336(4) and 337,

(c) section 405 (certain non-UK residents with interest on 3½% War Loan 1952 Or After),

(d) sections 468 and 471 (connection between creditor and debtor companies to be ignored in some cases where creditor is insurance company carrying on BLAGAB),

(e) section 483(6) (treatment of deferred acquisition costs and provision for unearned premiums or for unexpired risks as a money debt for the purposes of Chapter 2 of Part 6 in the case of companies carrying on insurance business), and

(f) section 486(4) (no exchange gains or losses to arise for the purposes of that Chapter where relevant debts prevented from being deductible [F5 as ordinary BLAGAB management expenses]).

(4) In this Chapter “BLAGAB” means basic life assurance and general annuity business.

Textual Amendments

F1 Words in s. 386(2)(a) inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 150(2)(a)

F2 S. 386(2)(c) and the word immediately preceding it omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 150(2)(b)

F3 Words in s. 386(3)(a) omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 150(3)(a)

F4 Words in s. 386(3)(a) inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 150(3)(b)

F5 Words in s. 386(3)(f) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 150(3)(c)