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Finance Act 2012

Chapter 2

4.Chapter 2 sets out the charge to tax on BLAGAB business, which is taxed on an I - E basis.

5.Section 66 explains that BLAGAB, non-BLAGAB long-term business and general insurance are to be treated as separate businesses.

6.Section 67 provides an exception to the separate trade treatment for BLAGAB when substantially all of the long-term business is not BLAGAB.

7.Section 68 imposes the charge to corporation tax on the I - E profit for BLAGAB; the “I - E profit” is explained in section 73.

8.Section 69 gives precedence to the I - E charge over the general charge to corporation tax on trade profits under section 35 of the Corporation Tax Act (CTA) 2009.

9.Section 70 explains what is meant by “the I - E rules”.

10.Section 71 applies the general corporation tax charge on trade profits to profits of non-BLAGAB long-term business, subject to Chapter 6 of the legislation and specific rules for transfers of non-BLAGAB long-term business.

11.Section 72 excludes companies carrying on only Permanent Health Insurance (PHI) business from Part 2 of the legislation and from provisions elsewhere in the Corporation Tax Acts which make special provision for long-term business carried on by insurance companies.

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