PART 2U.K.Insurance companies carrying on long-term business

CHAPTER 2U.K.Charge to tax on I - E basis etc

Separate businesses etcU.K.

66Separate businesses for BLAGAB and other long-term businessU.K.

(1)If an insurance company carries on—

(a)basic life assurance and general annuity business, and

(b)other long-term business,

the general rule is that business within paragraphs (a) and (b) is to be treated for corporation tax purposes as two separate businesses carried on by the company.

(2)One of the separate businesses is to consist of the basic life assurance and general annuity business.

(3)The other separate business is to be regarded for corporation tax purposes as a single trade consisting of the other long-term business.

(4)If an insurance company carries on—

(a)life assurance business none of which is basic life assurance and general annuity business, and

(b)PHI business,

the company is to be treated for corporation tax purposes as carrying on a single trade consisting of the businesses within paragraphs (a) and (b).

(5)For the purposes of this Part “non-BLAGAB long-term business” means—

(a)a single trade within subsection (3) or (4), or

(b)in a case where an insurance company carries on life assurance business none of which is basic life assurance and general annuity business but does not carry on other long-term business, that life assurance business.

(6)If an insurance company carries on short-term insurance business, that business is to be regarded for corporation tax purposes as a separate trade.

(7)For this purpose “short-term insurance business” means any insurance business which is not long-term business.

Modifications etc. (not altering text)