PART 2Insurance companies carrying on long-term business
CHAPTER 2Charge to tax on I - E basis etc
BLAGAB taxed on I - E basis
68Charge to tax on I - E profit
1
The charge to corporation tax applies to the I - E profit of the basic life assurance and general annuity business carried on by an insurance company.
2
For the meaning of “I - E profit”, see section 73.
69Exclusion of charge under s.35 of CTA 2009 etc
The charge to corporation tax under section 68 has effect instead of—
a
the charge to corporation tax on income under section 35 of CTA 2009 (charge to tax on trade profits),
b
any other charge to corporation tax on income under any other provision of the Corporation Tax Acts that would otherwise have applied, and
c
the charge to corporation tax on chargeable gains so far as referable, in accordance with Chapter 4, to the company's basic life assurance and general annuity business.
70Rules for calculating I - E profit or excess BLAGAB expenses
1
The rules set out in Chapter 3 determine whether for an accounting period an insurance company carrying on basic life assurance and general annuity business has an I - E profit or excess BLAGAB expenses (and, if so, the amount of the profit or expenses).
2
Those rules are referred to in this Part as “the I - E rules”.
3
The calculation of the I - E profit or excess BLAGAB expenses is to operate by reference to the amounts that are credited or debited in the accounts of the company for a period of account drawn up in accordance with generally accepted accounting practice.
4
But, in the case of amounts of a particular description, that is subject to any provision which (whether expressly or by implication) provides for that calculation to operate by reference to something else.
5
For the meaning of “excess BLAGAB expenses”, see section 73.