4(1)Paragraphs 2 and 3 have effect subject to the provisions of this paragraph.
(2)Nothing in paragraph 2 or 3 shall prevent any amount from being brought into account in accordance with section 83 of the [1989 c. 26.] Finance Act 1989 (receipts to be brought into account in Case I computation of profits in respect of life assurance).
(3)Where a reverse premium is received by an insurance company carrying on life assurance business in respect of which it is chargeable to tax otherwise than in accordance with the rules applicable to Case I of Schedule D, there shall be deducted from the amount treated as the company’s expenses of management for the accounting period in which the reverse premium is received such part of the reverse premium as is attributable—
(a)to its life assurance business, and
(b)to its basic life assurance and general annuity business.
(4)In this paragraph “insurance company”, “life assurance business” and “basic life assurance and general annuity business” have the same meaning as in Chapter I of Part XII of the Taxes Act 1988.