PART 2Corporation tax

Miscellaneous

67Insurance companies carrying on long-term business

1

Part 2 of FA 2012 (insurance companies carrying on long-term business) is amended as follows.

2

In section 73 (the I-E basis), in step 4—

a

for “(but not below nil) by the” substitute “ by the relievable ”, and

b

at the end of the step insert—

In this step, “the relievable amount” of a non-trading deficit means so much of the deficit as does not exceed the total of—

a

the amount given by the calculation required by step 1,

b

the amount given by the calculation required by step 2, and

c

any amount of an I-E receipt under section 92 brought into account under step 3.

3

In section 88 (loan relationships, derivative contracts and intangible fixed assets), in subsection (6), for “excess—” and paragraphs (a) and (b), substitute “ excess is treated for the purposes of section 76 as a deemed BLAGAB management expense for that period. ”

4

In section 126 (restrictions in respect of non-trading deficit), in subsection (2), for “would have under section 388” to the end substitute “has, calculated by reference only to credits and debits—

a

arising in respect of such of the company's loan relationships as are debtor relationships (see section 302(6) of CTA 2009), and

b

referable, in accordance with Chapter 4, to the company's basic life assurance and general annuity business.”

5

The amendments made by this section have effect in relation to accounting periods beginning on or after the day on which this Act is passed.