Part 2 Double taxation relief

CHAPTER 2 Double taxation relief by way of credit

Insurance companies

98 Attribution for section 97 purposes if category is gross roll-up business

(1) Subsections (2) and (3) apply for the purposes of section 97 in accordance with section 97(6), and in this section “the relevant income” has the meaning given by section 97(1).

(2) If—

(a) section 97(3) does not apply, and

(b) some or all of the relevant income is taken into account in accordance with section 83 of FA 1989 in an account in relation to which the provisions of section 432C of ICTA apply,

the fraction of the foreign tax that is attributable to gross roll-up business is the fraction given by—

where “the referable part” of the relevant income is the part of the relevant income which is referable to gross roll-up business by virtue of any provision of section 432C of ICTA.

(3) If some or all of the relevant income falls to be taken into account in determining in accordance with section 83(2) of FA 1989 the amount referred to in section 432E(1) of ICTA as the net amount, the fraction of the foreign tax that is attributable to gross roll-up business is the fraction given by—

where—

• “INV” is the investment income taken into account in that determination, and

• “the referable part” of INV is the part of INV which would be referable to gross roll-up business by virtue of section 432E of ICTA if INV were the only amount included in the net amount.

(4) The Treasury may by regulations amend subsection (3); and the regulations may include amendments having effect in accounting periods during which they are made.