154(1)Section 390 (meaning of “available profits”) is amended as follows.
(2)In subsection (4), for the words from “which is” to the end substitute “of the BLAGAB credits in respect of the company’s loan relationships that count as income for the purposes of the I - E rules for that period (as determined by section 88(3) and (4) of FA 2012)”.
(3)In subsection (5)—
(a)in step 1(a), for “so much of the expenses deduction for the period given by Step 8 in section 76(7) of ICTA (expenses of insurance companies) as is referable to BLAGAB” substitute “the amount for the purposes of section 73 of FA 2012 of the adjusted BLAGAB management expenses of the company for the period”,
(b)in step 1(b), for “so referable” substitute “referable to BLAGAB”,
(c)in step 2, for paragraph (a) (together with the “and” at the end of it) substitute—
“(a)so much of the amount for the purposes of section 73 of FA 2012 of the adjusted BLAGAB management expenses of the company for the period as, on the assumption that the company had no BLAGAB non-trading loan relationships profits for the period, could be subtracted at step 6 under that section without producing a negative amount, and”, and
(d)in step 2(b), for “so referable” substitute “referable to BLAGAB”.
(4)For subsection (6) substitute—
“(6)In the case of any claim under section 389, references in subsection (5) to the amount for the purposes of section 73 of FA 2012 of the adjusted BLAGAB management expenses of the company for the period are references to that amount as determined on the assumptions in subsections (7) and (8).”