PART 2Insurance companies carrying on long-term business
CHAPTER 9Relief for BLAGAB trade losses etc
Restrictions
126Restrictions in respect of non-trading deficit
1
The amount of a BLAGAB trade loss for an accounting period of an insurance company that is available for relief under—
a
section 37 of CTA 2010 (as applied by section 123), or
b
Part 5 of CTA 2010 (group relief) (as applied by section 125),
is to be reduced by the amount of any relevant non-trading deficit which the company has for the accounting period.
F21A
A loss falls within subsection (1B) so far as it—
a
would (apart from that subsection) be available for relief under section 124B (excess carried forward post-1 April 2017 losses: relief against total profits), and
b
arose in an accounting period for which the insurance company has a relevant non-trading deficit.
1B
A loss (or amount of a loss) falling within this subsection is available for relief under section 124B only so far as it exceeds the amount of that relevant non-trading deficit.
1C
A loss falls within subsection (1D) so far as it—
a
is an amount which a company (“the surrendering company“) may surrender by virtue of section 188BB(4) (surrender of carried-forward BLAGAB trade losses), and
b
arose in an accounting period for which the surrendering company has a relevant non-trading deficit.
1D
A loss (or amount of a loss) falling within this subsection is available for relief under Chapter 3 of Part 5A of CTA 2010 (claims for group relief) only so far as it exceeds the amount of that relevant non-trading deficit.
1E
For the purposes of subsections (1A) and (1C) it is to be assumed (where relevant) that in previous accounting periods losses which arose earlier have been utilised before losses which arose later.
2
a
arising in respect of such of the company's loan relationships as are debtor relationships (see section 302(6) of CTA 2009), and
b
referable, in accordance with Chapter 4, to the company's basic life assurance and general annuity business.
127No relief against policyholders' share of I - E profit
1
This section applies in the case of an insurance company carrying on basic life assurance and general annuity business.
2
None of the following reliefs are to be given against the policyholders' share of any I - E profit of the company for any accounting period (as determined for the purposes of section 102).
3
The reliefs in question are—
F5za
relief under section 124B (relief of excess carried-forward BLAGAB trade losses against total profits),
a
relief under section 37 of CTA 2010 (including as applied by section 123),
b
relief under Chapter 2 or 4 of Part 4 of CTA 2010 (loss relief),
c
relief under Part 5 of CTA 2010 (group relief) (including as applied by section 125),
F6ca
relief under Chapter 3 of Part 5A of CTA 2010 (group relief for carried-forward losses),
d
relief in respect of any qualifying charitable donation,
e
relief in respect of any amount representing a non-trading deficit on the company's loan relationships calculated otherwise than by reference to debits and credits referable, in accordance with Chapter 4, to its basic life assurance and general annuity business.
4
If the company's basic life assurance and general annuity business is mutual business, subsection (3)(d) does not apply.