PART 2

Insurance companies carrying on long-term business
CHAPTER 5

I - E profit: policyholders' rate of tax

Tax rate on policyholders' share of I - E profit

Meaning of “the adjusted amount”
104
1
This section explains for the purposes of section 103 what is meant by the adjusted amount of the BLAGAB trade profit.
2
The following adjustments are to be made to the amount of the BLAGAB trade profit.
3
If relief is available under section 124, 124A or 124C (carry forward of BLAGAB trade losses against subsequent profits), the BLAGAB trade profit is to be reduced as mentioned in that section.
4
If, as a result of relief given under any of those sections, the BLAGAB trade profit is reduced to nil, then the adjusted amount of the BLAGAB trade profit for the purposes of section 103 is nil.
5
If—
a
the BLAGAB trade profit is not reduced to nil as a result of relief given under section 124, 124A or 124C or no relief is available under those sections, and
b
in the accounting period BLAGAB non-taxable distributions are receivable by the company,
the BLAGAB trade profit is reduced or further reduced (but not below nil) by subtracting from it an amount equal to the shareholders' share of those distributions.
6
The BLAGAB trade profit as so reduced or further reduced is the adjusted BLAGAB trade profit for the purposes of section 103.
Words in s. 104(3) inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 186(a)
Words in s. 104(4) substituted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 186(b)
Words in s. 104(5)(a) substituted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 186(c)