PART 2Insurance companies carrying on long-term business
CHAPTER 3The I - E basis
Deemed I - E receipts
92Certain BLAGAB trading receipts to count as deemed I - E receipts
1
This section applies if—
a
an insurance company has receipts that are taken into account in calculating its BLAGAB trade profit or loss (see section 136) for an accounting period,
b
the receipts would not fall within the charge to corporation tax apart from this section, and
c
the receipts are not excluded receipts.
2
The appropriate amount of the receipts is an I - E receipt of the company for the accounting period.
3
The “appropriate amount” of the receipts is found by deducting expenses from the receipts so far as is necessary for calculating the full amount of the profits.
4
Chapter 1 of Part 20 of CTA 2009 (general rules for restricting deductions) is to apply to that calculation.
5
The following receipts are “excluded” receipts—
a
premiums,
b
sums received under re-insurance contracts (but see subsection (6) for exceptions),
c
sums which do not fall within the charge to corporation tax because of an exemption,
d
payments received under the Financial Services Compensation Scheme, and
e
payments received from other insurance companies to enable the company to meet its obligations to policyholders.
6
A sum received under a re-insurance contract is not an excluded receipt if—
a
it is a re-insurance commission (however described), or
b
it is a sum calculated to any extent by reference to the ordinary BLAGAB management expenses of the company referable to the accounting period (within the meaning of section 77).