PART 2Insurance companies carrying on long-term business

CHAPTER 3The I - E basis

Definitions of expressions comprising “E”

78Section 76: meaning of other expressions

1

This section explains for the purposes of section 76 what is meant by—

  • “other relevant rules”,

  • “deemed BLAGAB management expenses for the accounting period”,

  • “expenses reversed in the accounting period”, and

  • “BLAGAB trade loss relieved for the accounting period”.

2

An expense is deductible under another “relevant rule” if—

a

it is deductible as a result of section 92(3),

b

it is deductible in calculating, for corporation tax purposes, the profits of a property business, or

c

it is deductible as a result of section 272 of CTA 2009 in calculating income from the letting of rights to work minerals in the United Kingdom.

3

An amount is a “deemed BLAGAB management expense for the accounting period” if it is treated as such for the purposes of section 76 as a result of—

  • F4... paragraph 33(2) of Schedule 17 (spreading of acquisition expenses),

  • section 83 (general annuity business),

  • section 87(3) (losses from property businesses where land held for purposes of long-term business),

  • section 88(6) (excess of debits in respect of intangible fixed assets),

  • section 89(2) (excess of miscellaneous losses),

  • paragraph 16(1) of Schedule 7 to FA 1991 (transitional relief for old general annuity contracts),

  • section 256(2)(a) of CAA 2001 (allowances in respect of plant or machinery consisting of management asset),

  • F6section 270HH of CAA 2001 (allowances in respect of structures or buildings consisting of management asset),

  • section 391(3) of CTA 2009 (loan relationships: carry forward of surplus to next accounting period),

  • F1...

  • section 1162 of CTA 2009 (additional relief for remediation of contaminated or derelict land), or

  • section F5814C(7) of CTA 2010 (manufactured dividends).

4

“Expenses reversed in the accounting period” means the total amount of the expenses—

a

which were relieved in any previous accounting period in accordance with step 1 F2... or step 3 of section 76, but

b

which are subsequently reversed in the accounting period.

5

A “BLAGAB trade loss relieved for the accounting period” F3means any of the following—

a

a BLAGAB trade loss of the company for the accounting period in question, so far as relief is given for the loss under—

i

section 37 of CTA 2010 (relief for trade losses against total income), as applied by section 123, or

ii

Chapter 4 of Part 5 of that Act (group relief), as applied by section 125;

b

an amount deducted under section 124B (relief for excess carried forward post-1 April BLAGAB trade losses) from the company's total profits of the accounting period in question;

c

an amount of a BLAGAB trade loss of the company relieved under Chapter 3 of Part 5A of CTA 2010 (group relief for carried-forward losses) if the surrender period (see section 188BB(7)) to which the claim relates is the accounting period in question.