BLAGAB taxed on I - E basis
68Charge to tax on I - E profit
(1)The charge to corporation tax applies to the I - E profit of the basic life assurance and general annuity business carried on by an insurance company.
(2)For the meaning of “I - E profit”, see section 73.
69Exclusion of charge under s.35 of CTA 2009 etc
The charge to corporation tax under section 68 has effect instead of—
(a)the charge to corporation tax on income under section 35 of CTA 2009 (charge to tax on trade profits),
(b)any other charge to corporation tax on income under any other provision of the Corporation Tax Acts that would otherwise have applied, and
(c)the charge to corporation tax on chargeable gains so far as referable, in accordance with Chapter 4, to the company’s basic life assurance and general annuity business.
70Rules for calculating I - E profit or excess BLAGAB expenses
(1)The rules set out in Chapter 3 determine whether for an accounting period an insurance company carrying on basic life assurance and general annuity business has an I - E profit or excess BLAGAB expenses (and, if so, the amount of the profit or expenses).
(2)Those rules are referred to in this Part as “the I - E rules”.
(3)The calculation of the I - E profit or excess BLAGAB expenses is to operate by reference to the amounts that are credited or debited in the accounts of the company for a period of account drawn up in accordance with generally accepted accounting practice.
(4)But, in the case of amounts of a particular description, that is subject to any provision which (whether expressly or by implication) provides for that calculation to operate by reference to something else.
(5)For the meaning of “excess BLAGAB expenses”, see section 73.