SCHEDULES

SCHEDULE 7Insurance business: gross roll-up business etc

Part 1Amendments

Capital Allowances Act 2001 (c. 2)

69

1

Section 255 (apportionment of allowances and charges) is amended as follows.

2

For subsections (1) and (1A) substitute—

1

Except where subsection (3) applies, any allowance to which the company is entitled, and any charge to which it is liable, for a chargeable period in respect of a management asset must be apportioned between basic life assurance and general annuity business, gross roll-up business and PHI business in accordance with subsections (1A) and (1B).

1A

The allowance or charge is to be apportioned to a category of business using the formula—

A×BCmath

where—

A is the amount of the allowance or charge,

B is the mean of the opening and closing liabilities of that category of business, and

C is the mean of the opening and closing liabilities of all the categories of business mentioned in subsection (1) which are carried on by the company.

1B

If C is nil or below nil, the allowance or charge to be apportioned to a category of business is such as is just and reasonable.

3

Omit subsection (2).

4

In subsection (3)—

a

in paragraph (a), for “section 441 of ICTA in respect of its overseas life assurance business” substitute “ section 436A of ICTA (gross roll-up business) ”, and

b

in paragraph (b), for “provided outside the United Kingdom for use for the management of that business” substitute “ held for the purposes of a permanent establishment outside the United Kingdom at or through which the company carries on gross roll-up business ”.