Finance Act 2012

General outline of the provision of this Part of this Schedule

1 (1) This Part of this Schedule makes provision, by reference to the 2012 balance sheet and the 2012 periodical return of an insurance company (see paragraphs 2 to 4), for deeming amounts to be receipts or expenses of basic life assurance and general annuity business, or non-BLAGAB long-term business, carried on by the company (see paragraphs 9(1) and (2) and 10(1) and (2)).

(2) Those amounts are determined in accordance with provision made by or under paragraphs 5 to 8.

(3) The deeming is to have effect for the purpose of calculating the BLAGAB trade profit or loss or (as the case may be) for the purpose of calculating for corporation tax purposes the profits of the non-BLAGAB long-term business (see paragraphs 9(3) and 10(3)).

(4) The general rule is that, subject to exceptions, the receipts or expenses are treated as arising over a 10-year period (see paragraphs 11 to 15).

(5) Special provision is made in relation to the operation of sections 83YC to 83YF of FA 1989 (see paragraph 16).

(6) Anti-avoidance provision is made by paragraphs 17 to 19.

(7) Provision in relation to overseas life insurance companies is made by paragraph 20.