Income and Corporation Taxes Act 1988

[F1436AGross roll-up business: separate charge on profitsU.K.

[F2(1)The charge to corporation tax on income applies to profits arising to an insurance company from gross roll-up business.]

(2)For that purpose—

(a)the gross roll-up business is to be treated separately, and

(b)the profits from it are to be computed in accordance with the [F3life assurance trade profits provisions].

(3)In making that computation, sections 82 and 82B to [F483ZA] of the Finance Act 1989 apply with the necessary modifications.

(4)If in any accounting period an insurance company incurs a loss, to be computed on the same basis as the profits, arising from its gross roll-up business—

(a)the loss must be set off against the amount of any profits chargeable under this section for any subsequent accounting period, and

(b)accordingly, the amount of the company's profits so charged in any such accounting period is to be treated as reduced by the amount of the loss or so much of that amount as cannot be relieved under this section against profits of an earlier accounting period.

(5)Section 396 does not apply to a loss incurred by an insurance company on its gross roll-up business.

(6)No loss to which section 396 applies may be set off F5. . . against the amount of any profits chargeable under this section.

(7)This section does not apply in relation to an insurance company for an accounting period if the profits of its long-term business for the accounting period are charged to tax under [F6section 35 of CTA 2009 (charge on trade profits)].]

Textual Amendments

F1Ss. 436A, 436B inserted (with effect in accordance with s. 38(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 7 para. 25 (with Sch. 7 Pt. 2)

F2S. 436A(1) substituted (1.4.2009 with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 135(2) (with Sch. 2 Pts. 1, 2)

F3Words in s. 436A(2)(b) substituted (1.4.2009 with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 135(3) (with Sch. 2 Pts. 1, 2)

F4S. 436A(3): "83ZA" substituted for "83AB" (with effect in accordance with Sch. 9 para. 17(2)(3) of the amending Act) by Finance Act 2007 (c. 11), Sch. 9 para. 12; S.I. 2008/379, art. 2

F5Words in s. 436A(6) omitted (with effect in accordance with Sch. 17 para. 40(2) of the repealing Act) by virtue of Finance Act 2008 (c. 9), Sch. 17 para. 40(1)

F6Words in s. 436A(7) substituted (1.4.2009 with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 135(4) (with Sch. 2 Pts. 1, 2)

Modifications etc. (not altering text)