Corporation Tax Act 2009

393 General rules for some debtor relationships

(1) This section applies if a debtor relationship of an insurance company is represented by a liability which is a liability of its long-term insurance fund.

(2) Any question arising for the purposes of the Corporation Tax Acts as to how far any credits or debits given for the purposes of this Part in respect of the liability are referable to any particular category of the company’s long-term business is determined as follows.

(3) In the case of credits and debits within the rules in section 394, that section applies.

(4) In the case of other credits and debits, the relevant fraction of the credits or debits is referable to a category of long-term business.

(5) That fraction is determined by applying section 432A(6) to (6B) and (8) of ICTA (apportionment of income and gains) as if—

(a) the credits or debits were income not directly referable to any category of business, and

(b) the references in section 432A(6) to assets directly referable to a category of business were references to assets linked to that category.