Taxation (International and Other Provisions) Act 2010

102 Interpreting sections 99 to 101 for life assurance or gross roll-up business

(1) This section has effect for the interpretation of sections 99 to 101 if the category of business concerned—

(a) is life assurance business, or

(b) is gross roll-up business.

(2) The “total income” of the category of business concerned for the period of account in question is the amount (if any) by which—

(a) so much of the total income shown in the revenue account in the periodical return of the company concerned for that period as is referable to that category of business,

exceeds—

(b) so much of any commissions payable and any expenses of management incurred in connection with the acquisition of the business, as shown in that return, as is referable to that category of business.

(3) If any amounts are to be brought into account in accordance with section 83 of FA 1989, the amounts that are referable to the category of business concerned are to be determined for the purposes of subsection (2) in accordance with sections 432B to 432G of ICTA.

(4) The “total relevant expenses” of the category of business concerned for any period of account is the amount of the claims incurred—

(a) increased by any increase in the liabilities of the company, or

(b) reduced (but not below nil) by any decrease in the liabilities of the company.

(5) For the purposes of subsection (4), the amounts to be taken into account in the case of any period of account are the amounts as shown in the company’s periodical return for the period so far as referable to the category of business concerned.