Part 5Loan Relationships
Chapter 10Insurance companies
Treatment of deficit on basic life assurance and general annuity business
388Basic rule: deficit set off against income and gains of deficit period
1
The basic rule is that the deficit must be set off against any income and gains of the deficit period which are referable to BLAGAB.
2
The income and gains are reduced accordingly.
3
Any such reduction is made before any expenses deduction under section 76 of ICTA (expenses of insurance companies).