Finance Act 1996

3 (1) In section 86 of the M1 Finance Act 1989 (spreading of relief for acquisition expenses) in subsection (1), for the words from “less any such repayments” to the end there shall be substituted— E+W+S+N.I.

“reduced by the items specified in subsection (1A) below.”

(2) After that subsection there shall be inserted—

“(1A) Those items are—

(a) the appropriate portion of any deduction falling to be made under paragraph (aa) of subsection (1) of section 76 of the Taxes Act 1988 for the period in question;

(b) any such repayments or refunds falling within paragraph (c) of that subsection as are received in that period;

(c) any reinsurance commissions falling within paragraph (ca) of that subsection.

(1B) For the purposes of paragraph (a) of subsection (1A) above, “the appropriate portion” of the deduction there mentioned is the amount which bears to the whole of that deduction the proportion which the acquisition expenses, without making the reduction required by subsection (1) above, would bear to the whole of the expenses of management, without making the deductions required by paragraphs (aa), (a), (c) and (ca) of section 76(1) of the Taxes Act 1988.”

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Marginal Citations

M1 1989 c. 26.