Entitlement to life assurance company tax credit
24(1)A company may claim a life assurance company tax credit under this paragraph if in an accounting period it has a “qualifying loss”.
(2)A company has a “qualifying loss” for this purpose if in an accounting period—
(a)the company is entitled to relief under paragraph 22, and
(b)an amount falls to be carried forward to a succeeding accounting period under section 75(3) of the Taxes Act 1988 (carrying forward expenses of management and charges on income where such expenses and charges exceed amount of profits from which deductible).
(3)In determining for the purposes of sub-paragraph (2)(b) whether there is an amount which falls to be carried forward under section 75(3) of that Act, there shall be disregarded any amounts brought forward from an earlier accounting period and treated as expenses of management for the period in question by virtue of—
(a)a previous application of section 75(3) of that Act, or
(b)paragraph 4(4) of Schedule 11 to the Finance Act 1996 (c. 8) (loan relationships deficit carried forward and treated as expenses of management).
(4)The amount of the qualifying loss is equal to the lesser of—
(a)150% of the related qualifying expenditure, and
(b)such amount as is determined in accordance with sub-paragraph (3) to be an amount which falls to be carried forward as described in sub-paragraph (2)(b).