Finance Act 2012

Capital Allowances Act 2001

106 (1) Schedule A1 (first-year tax credits) is amended as follows.

(2) In paragraph 7—

(a) in sub-paragraph (2), for the words from “which is treated” to the end substitute “which, as a result of section 87(3) of FA 2012, is treated for the purposes of section 76 of that Act as a deemed BLAGAB management expense for an accounting period”, and

(b) in sub-paragraph (3), for “section 432AA” substitute “section 86” and for “section 432AB(4)” substitute “section 87(4)”.

(3) In paragraph 9—

(a) in sub-paragraph (1), for “life assurance business” substitute “basic life assurance and general annuity business” and for “under the I minus E basis” substitute “in accordance with the I - E rules”, and

(b) in sub-paragraph (2), for “section 76(12) of ICTA” substitute “section 73 of FA 2012”.

(4) In paragraph 14—

(a) in sub-paragraph (2), for “section 76(12) of ICTA” substitute “section 73 of FA 2012”,

(b) in sub-paragraph (3), for “section 76(12)” substitute “section 73”,

(c) in sub-paragraph (5), for “section 76(12) of ICTA” substitute “section 73 of FA 2012”, and

(d) for sub-paragraph (6) substitute—

“(6) Disregard any amounts brought forward from an earlier chargeable period which fall to be taken into account in calculating for the purposes of section 73 of FA 2012 the amount of adjusted BLAGAB management expenses of the company for the period in question as a result of—

(a) the previous application of section 73 or 93 of FA 2012, or

(b) the carry forward to the period in question of an amount under section 391(3) of CTA 2009 (loan relationship deficit carried forward).”

(5) In paragraph 16—

(a) in sub-paragraph (1), for “life assurance business” substitute “basic life assurance and general annuity business” and for “under the I minus E basis” substitute “in accordance with the I - E rules”, and

(b) for sub-paragraph (3) substitute—

“(3) For this purpose, no account is to be taken of any amounts brought forward from an earlier chargeable period which fall to be taken into account in calculating for the purposes of section 73 of FA 2012 the amount of adjusted BLAGAB management expenses of the company for the period in question as a result of—

(a) the previous application of section 73 or 93 of FA 2012, or

(b) the carry forward to the period in question of an amount under section 391(3) of CTA 2009 (loan relationship deficit carried forward).”

(6) In paragraph 21—

(a) in sub-paragraph (1)(a), for the words from “treated” to the end substitute “which, as a result of section 87(3) of FA 2012, is treated for the purposes of section 76 of that Act as a deemed BLAGAB management expense for the chargeable period”,

(b) in sub-paragraph (1)(b), for “section 76(12) of that Act” substitute “section 73 of FA 2012”, and

(c) in sub-paragraph (2), for “section 76(12) of ICTA” substitute “section 73 of FA 2012”.

(7) In paragraph 22—

(a) in sub-paragraph (1), for “life assurance business” substitute “basic life assurance and general annuity business” and for “under the I minus E basis” substitute “in accordance with the I - E rules”, and

(b) for sub-paragraph (2) substitute—

“(2) For the purposes of those rules, the total amount which may—

(a) be carried forward under section 73 of FA 2012 from a chargeable period in which the company claims a first-year tax credit, and

(b) be brought into account for the next chargeable period in accordance with step 5 in section 76 of FA 2012,

is treated as reduced by the amount of the loss surrendered.”