xmlns:atom="http://www.w3.org/2005/Atom" xmlns:atom="http://www.w3.org/2005/Atom"

Part 5U.K.Loan Relationships

Modifications etc. (not altering text)

C1Pt. 5 applied (with effect in accordance with Sch. 24 paras. 13-16 of the amending Act) by Finance Act 2009 (c. 10), Sch. 24 para. 15(2)(3)

C2Pt. 5 applied (with modifications) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 990(5), 1184(1) (with Sch. 2)

Chapter 10U.K.Insurance companies

Treatment of deficit on basic life assurance and general annuity businessU.K.

388Basic rule: deficit set off against income and gains of deficit periodU.K.

(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).