94U.K.CAA 2001 is amended as follows.
95U.K.In section 19(5) (special leasing of plant or machinery), for “life assurance business” substitute “ long-term business ”.
96U.K.In the italic heading before section 254, for “Life assurance” substitute “ Long-term ”.
97U.K.In section 254(1) (introductory), for “life assurance business” substitute “ long-term business ”.
98U.K.For section 255 substitute—
(1)This section applies if the long-term business of the company consists of—
(a)basic life assurance and general annuity business, and
(b)non-BLAGAB long-term business.
(2)In that case—
(a)any allowance to which the company is entitled for a chargeable period in respect of a management asset, and
(b)any charge to which it is liable for a chargeable period in respect of a management asset,
must be apportioned between the businesses in accordance with Chapter 7 of Part 2 of FA 2012.”
99(1)Section 256 (different giving effect rules for different categories of business) is amended as follows.U.K.
(2)In subsection (1)(b)—
(a)for “under the I minus E basis” substitute “ in accordance with the I - E rules ”, and
(b)for “its life assurance business” substitute “ that business ”.
(3)In subsection (2)(a), for the words from “as expenses payable” to “section 76(7) of ICTA” substitute “ for the purposes of section 76 of FA 2012 as deemed BLAGAB management expenses for the chargeable period in question ”.
(4)Omit subsections (3) and (4).
(5)In the heading, for “different categories of business” substitute “ BLAGAB ”.
100U.K.In section 257(2) (supplementary), for paragraphs (a) and (b) substitute—
“(a)section 93(5) of FA 2012 (minimum profits test), or
(b)section 103 of FA 2012 (rules for determining policyholders' share of I - E profit).”
101(1)Section 261 (special leasing: life assurance business) is amended as follows.U.K.
(2)For “life assurance business” substitute “ long-term business ”.
(3)In the heading, for “life assurance business” substitute “ long-term business ”.
102U.K.In the heading for Chapter 1 of Part 12, for “LIFE ASSURANCE” substitute “ LONG-TERM ”.
103(1)Section 544 (management assets) is amended as follows.U.K.
(2)In subsections (1) and (2), for “life assurance business” substitute “ long-term business ”.
(3)Omit subsection (3).
104(1)Section 545 (investment assets) is amended as follows.U.K.
(2)In subsection (1), for “life assurance business” substitute “ long-term business ”.
(3)For subsections (3) to (5) substitute—
“(3)No allowance in respect of an investment asset is to be taken into account in calculating for corporation tax purposes the profits of any non-BLAGAB long-term business carried on by the company.”
105(1)Section 560 (transfer of insurance company business) is amended as follows.U.K.
(2)In subsection (1)(b)(ii), omit the words from “within” to the end.
(3)In subsection (5), after paragraph (d) insert—
“(e)qualifying overseas transfer” means so much of a transfer of the whole or any part of the business of an overseas life insurance company carried on through a permanent establishment in the United Kingdom as takes place in accordance with an authorisation granted outside the United Kingdom for the purposes of Article 14 of the Council Directive of 5 November 2002 concerning life assurance (2002/83/EC).”
106(1)Schedule A1 (first-year tax credits) is amended as follows.U.K.
(2)In paragraph 7—
(a)in sub-paragraph (2), for the words from “which is treated” to the end substitute “ which, as a result of section 87(3) of FA 2012, is treated for the purposes of section 76 of that Act as a deemed BLAGAB management expense for an accounting period ”, and
(b)in sub-paragraph (3), for “section 432AA” substitute “ section 86 ” and for “section 432AB(4)” substitute “ section 87(4) ”.
(3)In paragraph 9—
(a)in sub-paragraph (1), for “life assurance business” substitute “ basic life assurance and general annuity business ” and for “under the I minus E basis” substitute “ in accordance with the I - E rules ”, and
(b)in sub-paragraph (2), for “section 76(12) of ICTA” substitute “ section 73 of FA 2012 ”.
(4)In paragraph 14—
(a)in sub-paragraph (2), for “section 76(12) of ICTA” substitute “ section 73 of FA 2012 ”,
(b)in sub-paragraph (3), for “section 76(12)” substitute “ section 73 ”,
(c)in sub-paragraph (5), for “section 76(12) of ICTA” substitute “ section 73 of FA 2012 ”, and
(d)for sub-paragraph (6) substitute—
“(6)Disregard any amounts brought forward from an earlier chargeable period which fall to be taken into account in calculating for the purposes of section 73 of FA 2012 the amount of adjusted BLAGAB management expenses of the company for the period in question as a result of—
(a)the previous application of section 73 or 93 of FA 2012, or
(b)the carry forward to the period in question of an amount under section 391(3) of CTA 2009 (loan relationship deficit carried forward).”
(5)In paragraph 16—
(a)in sub-paragraph (1), for “life assurance business” substitute “ basic life assurance and general annuity business ” and for “under the I minus E basis” substitute “ in accordance with the I - E rules ”, and
(b)for sub-paragraph (3) substitute—
“(3)For this purpose, no account is to be taken of any amounts brought forward from an earlier chargeable period which fall to be taken into account in calculating for the purposes of section 73 of FA 2012 the amount of adjusted BLAGAB management expenses of the company for the period in question as a result of—
(a)the previous application of section 73 or 93 of FA 2012, or
(b)the carry forward to the period in question of an amount under section 391(3) of CTA 2009 (loan relationship deficit carried forward).”
(6)In paragraph 21—
(a)in sub-paragraph (1)(a), for the words from “treated” to the end substitute “ which, as a result of section 87(3) of FA 2012, is treated for the purposes of section 76 of that Act as a deemed BLAGAB management expense for the chargeable period ”,
(b)in sub-paragraph (1)(b), for “section 76(12) of that Act” substitute “ section 73 of FA 2012 ”, and
(c)in sub-paragraph (2), for “section 76(12) of ICTA” substitute “ section 73 of FA 2012 ”.
(7)In paragraph 22—
(a)in sub-paragraph (1), for “life assurance business” substitute “ basic life assurance and general annuity business ” and for “under the I minus E basis” substitute “ in accordance with the I - E rules ”, and
(b)for sub-paragraph (2) substitute—
“(2)For the purposes of those rules, the total amount which may—
(a)be carried forward under section 73 of FA 2012 from a chargeable period in which the company claims a first-year tax credit, and
(b)be brought into account for the next chargeable period in accordance with step 5 in section 76 of FA 2012,
is treated as reduced by the amount of the loss surrendered.”
107(1)Part 2 of Schedule 1 (index of defined expressions) is amended as follows.U.K.
(2)Omit the entry for “life assurance business”.
(3)Insert the following entries at the appropriate places—
| “basic life assurance and general annuity business | sections 57 and 67(5) of FA 2012 (as applied by section 141(2) of that Act)” |
| “I - E rules | section 70(1) and (2) of FA 2012 (as applied by section 141(2) of that Act)” |
| “insurance company | section 65 of FA 2012 (as applied by section 141(2) of that Act)” |
| “long-term business | section 63(1) of FA 2012 (as applied by section 141(2) of that Act)” |
| “non-BLAGAB long-term business | sections 66 and 67 of FA 2012 (as applied by section 141(2) of that Act)” |