Corporation Tax Act 2009

Finance Act 1989 (c. 26) U.K.

338 U.K. The Finance Act 1989 is amended as follows.

339 U.K. Omit section 43 (Schedule D: computation (unpaid remuneration)).

340 U.K. Omit section 44 (companies with investment business and insurance companies: computation).

341 U.K. In section 82(1) (calculation of profits: bonuses etc) for the words from “, for” to the end substitute “ computed in accordance with the provisions applicable for the purposes of the taxation of such profits under section 35 of the Corporation Tax Act 2009 (charge on trade profits) ”.

342 U.K. In section 82D(2) (treatment of profits: life assurance_adjustment consequent on change in Insurance Prudential Sourcebook) for the words from “for the purposes” to “Schedule D” substitute “ in accordance with the life assurance trade profits provisions ”.

343 U.K. In section 82E(7) (section 82D: treatment of transferors under insurance business transfer schemes) for the words from “for the purposes” to “Schedule D” substitute “ in accordance with the life assurance trade profits provisions ”.

344 (1) Amend section 83 (receipts to be taken into account) as follows. U.K.

(2) In subsection (1) for the words from “, for” to the end substitute “ computed in accordance with the provisions applicable for the purposes of the taxation of such profits under section 35 of the Corporation Tax Act 2009 (charge on trade profits) ”.

(3) For subsection (2ZA)(a) to (c) substitute—

“(a) section 464 of the Corporation Tax Act 2009 (priority of Part 5 of that Act for corporation tax purposes),

(b) section 699 of that Act (priority of Part 7 of that Act for corporation tax purposes), and

(c) section 906 of that Act (priority of Part 8 of that Act for corporation tax purposes).”

(4) In subsection (2AB)(a) for “of the Taxes Act 1988 applicable to Case I of Schedule D” substitute “ applicable to the taxation of such profits under section 35 of the Corporation Tax Act 2009 ”.

345 (1) Amend section 83YC (FAFTS: charge in relevant period of account) as follows. U.K.

(2) In subsection (6)(b) for “provisions of Case I of Schedule D” substitute “ life assurance trade profits provisions ”.

(3) In subsection (10) for “provisions of Case I of Schedule D” substitute “ life assurance trade profits provisions ”.

346 U.K. In section 83YD(3)(a) (FAFTS: deduction in subsequent periods of account) for “section 82(2)(b) of the Finance Act 1996” substitute “ section 297(3) of the Corporation Tax Act 2009 ”.

347 (1) Amend section 83YF (financial reinsurance arrangements: further provision) as follows. U.K.

(2) In subsection (2) for “provisions of Case I of Schedule D” substitute “ life assurance trade profits provisions ”.

(3) In subsection (3) for “provisions of Case I of Schedule D” substitute “ life assurance trade profits provisions ”.

348 (1) Amend section 85 (charge of certain receipts of basic life assurance business) as follows. U.K.

(2) In subsection (1)—

(a) for “there shall be chargeable under Case VI of that Schedule” substitute “ the charge to corporation tax on income shall apply to ”,

(b) in paragraph (a) for “Case I of Schedule D” substitute “ section 35 of the Corporation Tax Act 2009 (charge on trade profits) ”, and

(c) in paragraph (b) for “Case I of Schedule D” substitute “ section 35 of the Corporation Tax Act 2009 ”.

(3) In subsection (2)(e) for “Case I of Schedule D” substitute “ section 35 of the Corporation Tax Act 2009 ”.

(4) For subsection (2B) substitute—

“(2B) Expenses are deducted from receipts falling within subsection (1) so far as is necessary for calculating the full amount of the profits.

This is subject to subsection (2BA).

(2BA) The provisions of Chapter 1 of Part 20 of the Corporation Tax Act 2009 (general rules for restricting deductions) apply to the calculation of those profits.”

349 (1) Amend section 85A (excess adjusted Case I profits) as follows. U.K.

(2) In subsection (1) for the words “Case I profits under Case VI of that Schedule” substitute “ life assurance trade profits under the charge to corporation tax on income ”.

(3) In subsection (2) for “Case I”, in both places where it occurs, substitute “ life assurance trade ”.

(4) In subsection (3)—

(a) for “Case I profits” substitute “ life assurance trade profits ”, and

(b) in paragraph (a) for “provisions applicable to Case I of Schedule D” substitute “ life assurance trade profits provisions ”.

(5) In subsection (4) for “Case I of Schedule D” substitute “ section 35 of the Corporation Tax Act 2009 ”.

(6) In subsection (6)(b) omit “under Case VI of Schedule D”.

(7) In subsection (8)—

(a) in paragraph (b)—

(i) after “loan relationships” insert “ under Part 5 of the Corporation Tax Act 2009 ”, and

(ii) omit the words from “by” to “1996”, and

(b) in paragraph (c)—

(i) for “paragraph 4(3) of that Schedule” substitute “ section 389(1) of the Corporation Tax Act 2009 ”, and

(ii) omit “(in accordance with paragraph 4(5) of that Schedule)”.

(8) In the title for “Case I” substitute “ life assurance trade ”.

350 U.K. In section 88(3)(b) (corporation tax: policy holders' share of profits) omit “under Case VI of Schedule D”.

351 (1) Amend section 89 (policy holders' share of profits) as follows. U.K.

(2) In subsection (1)(a) for “Case I” substitute “ life assurance trade ”.

(3) In subsection (1A)—

(a) omit “under Case VI of Schedule D”, and

(b) for “Case I”, in both places where it occurs, substitute “ life assurance trade ”.

(4) In subsection (2) for “Case I” substitute “ life assurance trade ”.

(5) In subsection (3) for “Case I” substitute “ life assurance trade ”.

(6) In subsection (4) for “Case I”, in both places where it occurs, substitute “ life assurance trade ”.

(7) In subsection (7)—

(a) for “ “Case I profits”” substitute “ “life assurance trade profits” ”, and

(b) for “provisions of the Taxes Act 1988 applicable to Case I of Schedule D” substitute “ life assurance trade profits provisions ”.

(8) In subsection (7B) for “Case I” substitute “ life assurance trade ”.