Insurance companies | Croner-i Tax and Accounting

– see also Friendly societies

Accounting periods

Beginning on or after 1 January 2013 (commencement date)

Legislation/Regulatory – FA2012 s. 148 ; M07/13

HMRC Guidance – LAM01170

Straddling 1 January 2013

Legislation/Regulatory – FA2012 s. 149 ; M07/13

Accounting periods straddling 1 January 2012

Legislation/Regulatory – FA2012 s. 149

Advance corporation tax, unrelieved surplus

Legislation/Regulatory – SI 1999/358 reg. 23

Apportionment

Between different separate businesses

Legislation/Regulatory – FA2012 s. 114, 115 ; SI 2012/3008 reg. 12, 13

HMRC Guidance – LAM05010 ; LAM05020 ; LAM05080 ; LAM05110 ; LAM09020

Income and gains

Legislation/Regulatory – FA90 Sch. 6, para. 11, 12

HMRC Guidance – GIM5170

Apportionment rules I - E charge

Chargeable gains and allowable losses

Legislation/Regulatory – FA2012 s. 99-101

HMRC Guidance – LAM03300 ; LAM05020 ; LAM05050 ; LAM05100

Commercial method

Legislation/Regulatory – FA2012 s. 98 ; SI 2012/3008 reg. 11

HMRC Guidance – LAM03300 ; LAM05020 ; LAM05070 ; LAM05080 ; LAM05090 ; LAM05120 ; LAM09020

Generally

Legislation/Regulatory – FA2012 s. 97 ; SI 2012/3008 reg. 10

HMRC Guidance – LAM05010 ; LAM05020 ; LAM05040

Authorised investment funds

– see Authorised investment funds

Basic life and general annuity business (BLAGAB)

Loan relationships

Commentary – Tax Reporter ¶717-160 ; Tax Reporter ¶718-050

HMRC Guidance – CFM39220 ; CFM39230

Basic life assurance and general annuity business (BLAGAB)

Accounting periods beginning on or after 1 January 2013 (commencement date)

Legislation/Regulatory – FA2012 s. 148 ; M07/13

Accounting periods straddling 1 January 2013

Legislation/Regulatory – FA2012 s. 149

Apportionment rules for I - E charge

Legislation/Regulatory – FA2012 s. 97-101 ; SI 2012/3008 reg. 10, 11

Calculation of trade profit or loss

Legislation/Regulatory – FA2012 s. 109-113

HMRC Guidance – LAM11060

Charge to tax on I - E basis

Legislation/Regulatory – FA2012 s. 68-70

HMRC Guidance – CTM40330 ; LAM01150 ; LAM02050 ; LAM02060 ; LAM03010 ; LAM03030 ; LAM03090 ; LAM05010 ; LAM06010 ; LAM07010 ; LAM07200 ; LAM10100 ; LAM10200 ; LAM10210 ; LAM10310 ; LAM12200

Child trust fund business, meaning

Legislation/Regulatory – FA2012 s. 59

Commencement

Legislation/Regulatory – FA2012 s. 148

Deemed receipts or expenses, transitional provisions

Legislation/Regulatory – FA2012 Sch. 17, para. 1-20 ; SI 2012/3009

Definitions

Legislation/Regulatory – FA2012 s. 136-141

HMRC Guidance – CTM05040

I - E basis

Legislation/Regulatory – FA2012 s. 73-96

HMRC Guidance – CA23181 ; CFM64390 ; INTM194800 ; INTM245400 ; LAM02020 ; LAM02060 ; LAM03010 ; LAM03020 ; LAM03030 ; LAM03040 ; LAM03060 ; LAM03200 ; LAM03400 ; LAM03410 ; LAM03420 ; LAM03500 ; LAM03510 ; LAM03520 ; LAM04010 ; LAM04040 ; LAM05020 ; LAM06040 ; LAM06050 ; LAM07230 ; LAM10230 ; LAM12020 ; LAM12110 ; LAM12150 ; LAM14060 ; LAM15020

Individual savings account business, meaning

Legislation/Regulatory – FA2012 s. 60

Meaning

Legislation/Regulatory – FA2012 s. 57 ; SI 2012/3008 reg. 5, 6

HMRC Guidance – LAM01080 ; LAM01140 ; LAM01160 ; LAM03220 ; LAM10110 ; LAM10300 ; LAM10320 ; LAM10400 ; LAM12040

Overseas life assurance business, meaning

Legislation/Regulatory – FA2012 s. 61

HMRC Guidance – IPTM3330 ; LAM10320 ; LAM12040

Pension business, meaning

Legislation/Regulatory – FA2012 s. 58

HMRC Guidance – CTM40320

Policyholders' rate of tax

Legislation/Regulatory – FA2012 s. 102-108

HMRC Guidance – INTM194800 ; LAM01160 ; LAM06010 ; LAM07220 ; LAM09100

Protection business, meaning

Legislation/Regulatory – FA2012 s. 62 ; M08/13

HMRC Guidance – LAM01170 ; LAM02040 ; LAM14040

Separate businesses where other long-term business

Legislation/Regulatory – FA2012 s. 66, 67 ; M09/13 ; SI 2012/3008 reg. 8, 9

HMRC Guidance – LAM01130 ; LAM01140 ; LAM02040 ; LAM05010 ; LAM07010 ; LAM10100 ; LAM10200 ; LAM10300

Share pooling rules

Legislation/Regulatory – FA2012 s. 119-121

HMRC Guidance – LAM03210 ; LAM03230 ; LAM03310 ; LAM12020

Trade loss relief

Legislation/Regulatory – FA2012 s. 123-127

HMRC Guidance – LAM04300 ; LAM06060 ; LAM07310 ; LAM09030 ; LAM15010 ; LAM15040

Trading apportionment rules

Legislation/Regulatory – FA2012 s. 114, 115 ; SI 2012/3008 reg. 12, 13

Transfer of assets

Legislation/Regulatory – FA2012 s. 116-118

HMRC Guidance – CG53190 ; LAM03020 ; LAM03210 ; LAM03710 ; LAM03730 ; LAM12020

Transfers of business

Legislation/Regulatory – FA2012 s. 128-135

HMRC Guidance – LAM13040

Transitional provisions

Legislation/Regulatory – FA2012 Sch. 17 ; SI 2012/3009

HMRC Guidance – LAM07040 ; LAM07120 ; LAM07130 ; LAM10300 ; LAM11020 ; LAM11030 ; LAM11040 ; LAM11050 ; LAM11060 ; LAM12020 ; LAM12040 ; LAM13040 ; LAM14010 ; LAM14020 ; LAM14030 ; LAM14040 ; LAM14050 ; LAM14070

Treasury power to make amendments, orders and regulations

Legislation/Regulatory – FA2012 s. 142-144

HMRC Guidance – LAM12020

Basic life assurance and general annuity business (BLAGAB), deduction of unused losses in making Schedule D, Case I computation of profits

Case Law – Sun Life Assurance Co of Canada (UK) Ltd v Revenue & Customs Commissioners. [2010] BTC 526 ; Sun Life Assurance Co of Canada (UK) Ltd v Revenue and Customs Commissioners. [2009] BTC 73

Bed and breakfasting

Legislation/Regulatory – TCGA92 s. 210B

Calculation of trade profit or loss

Allocations to policyholders

Legislation/Regulatory – FA2012 s. 110

HMRC Guidance – LAM07110

Dividends and other distributions

Legislation/Regulatory – FA2012 s. 111

Generally

Legislation/Regulatory – FA2012 s. 109

Index-linked gilt-edged securities

Legislation/Regulatory – FA2012 s. 112

Long-term business fixed capital

Legislation/Regulatory – FA2012 s. 113

Capital redemption business

Generally

Legislation/Regulatory – SI 1999/498

Management expenses

Legislation/Regulatory – SI 1999/498

Meaning

Legislation/Regulatory – SI 1999/498

Self-assessment

Legislation/Regulatory – SI 1999/498

Captive insurance companies insuring extended warranties for customers

Case Law – DSG Retail Ltd; Mastercare Coverplan Service Agreements Ltd; Mastercare Service and Distribution Ltd [2009] TC 00001

Change of accounting basis, mark to market

Legislation/Regulatory – FA2002 s. 65, 66

Charge to tax

Basic life assurance and general annuity business

Legislation/Regulatory – FA2012 s. 68-70

Trade profits other than life assurance business

Legislation/Regulatory – CTA2009 s. 35 ; FA2002 s. 65, 66 ; FA2012 s. 71

HMRC Guidance – LAM01160 ; LAM02040 ; LAM02050 ; LAM05010 ; LAM07010

Chargeable gains

Bed and breakfasting

Legislation/Regulatory – TCGA92 s. 210B

Disposal and acquisition of securities

Legislation/Regulatory – TCGA92 s. 210B

Ringfencing of losses

Legislation/Regulatory – FA2003 Sch. 33, para. 14(2), (3) ; TCGA92 s. 210A

Transfers of business

Legislation/Regulatory – TCGA92 s. 211, 211ZA

HMRC Guidance – LAM05100 ; LAM13040

Unrelieved general annuity losses, transitional provisions

Legislation/Regulatory – FA91 Sch. 7, para. 17

Charges on income, method of deduction where policy holder entitled to part of profits

Case Law – Prudential Assurance Co Ltd v Bibby (HM Inspector of Taxes). [1999] BTC 323

Child trust funds

– see Child trust funds

Composite insurance companies

Commentary – Tax Reporter ¶780-000

Computation of profit (not I - E computation)

Legislation/Regulatory – SP 4/95

Contract of insurance, meaning

Legislation/Regulatory – FA2012 s. 64

HMRC Guidance – CTM40320 ; LAM01070 ; LAM01090 ; LAM01150

Contract of long-term insurance, meaning

Legislation/Regulatory – FA2012 s. 64

Controlled foreign companies

Commentary – Tax Reporter ¶770-135 ; Tax Reporter ¶770-245 ; Tax Reporter ¶770-415

Legislation/Regulatory – ICTA88 Sch. 25, para. 6(2B), 11A, 11B ; SI 1999/1408 ; SI 2007/2145 reg. 12 ; SI 2012/3044

Conversion of securities held as circulating capital

Legislation/Regulatory – FA2002 s. 67(4)

De-mutualisation

Transfers of basic life assurance and general annuity business (BLAGAB)

Legislation/Regulatory – FA2012 s. 129 ; M10/13

HMRC Guidance – LAM13040 ; LAM13060

Windfall pay-outs

Legislation/Regulatory – TB04/98-1

Deductions, policy holders' tax

Legislation/Regulatory – SI 2003/2082

Deemed receipts or expenses, transitional provisions

Legislation/Regulatory – FA2012 Sch. 17, para. 1-20

Demutualisation

Legislation/Regulatory – FA2003 s. 63, Sch. 7 ; FA2005 s. 97(5), (6) ; FA97 s. 96

HMRC Guidance – SDLTM00700 ; SDLTM09300 ; SDLTM09310 ; SDLTM16040 ; SDLTM23013 ; SDLTM23030 ; SDLTM23035 ; SDLTM23040 ; SDLTM23070 ; SDLTM23071 ; SDLTM23080 ; SDLTM23084 ; SDLTM23085 ; SDLTM23100 ; SDLTM23210 ; SDLTM23220 ; SDLTM23250 ; SDLTM23260 ; SDLTM23270 ; SDLTM23280 ; SDLTM23505 ; SDLTM29910 ; SDLTM30220 ; SDLTM31400 ; SDLTM33850 ; SDLTM33860 ; SDLTM34010 ; SDLTM34230 ; SDLTM85930

Deposit-takers

– see Deposit-takers

Derivative contracts

Commentary – Tax Reporter ¶720-075

Legislation/Regulatory – CTA2009 s. 634-636

Dividends and other distributions

Generally

Legislation/Regulatory – FA2012 s. 111

Trade investments in overseas companies, credit for underlying tax

Legislation/Regulatory – ESC C1

Double taxation relief

Commercial allocation of relevant income to different categories of long-term business

Legislation/Regulatory – TIOPA2010 s. 97A

Interpretation

Legislation/Regulatory – TIOPA2010 s. 103, 104

HMRC Guidance – LAM09200 ; LAM09210 ; LAM09230

More than one category of business, restriction of credit

Legislation/Regulatory – TIOPA2010 s. 97

HMRC Guidance – LAM09010 ; LAM09020

Overseas branches, restriction of credit

Legislation/Regulatory – TIOPA2010 s. 96

HMRC Guidance – INTM164200 ; LAM09250

Setting expenses/other deductions against items of income

Legislation/Regulatory – TIOPA2010 s. 99-104

HMRC Guidance – LAM09200

Double taxation relief, Case I profit/pension business

Case Law – Legal & General Assurance Society Ltd v Thomas (HMIT) (2005) Sp C 461 ; Legal and General Assurance Society Ltd v Revenue and Customs Commissioners. [2006] BTC 713

EEA firms

Commentary – Tax Reporter ¶780-000

Employee benefit contributions

Legislation/Regulatory – CTA2009 s. 1297

Employers' associations

– see Employers' associations

Equalisation reserves

Abolition of relief

Legislation/Regulatory – FA2012 s. 26

HMRC Guidance – GIM7000 ; GIM7400 ; GIM7410 ; GIM7420 ; GIM7430 ; GIM7450 ; GIM7460

Double taxation relief

Legislation/Regulatory – FA2012 s. 28 ; SI 1996/2991 reg. 2(1), 10

HMRC Guidance – GIM7480 ; GIM7490

Election to accelerate receipts

Legislation/Regulatory – FA2012 s. 27

HMRC Guidance – GIM7440

One sixth to be treated as receipt in each six calendar years

Legislation/Regulatory – FA2012 s. 26(4), 27, 28

HMRC Guidance – GIM7410 ; GIM7440 ; GIM7480 ; GIM7490

Transfer of whole or part of business

Legislation/Regulatory – FA2012 s. 29

HMRC Guidance – GIM7450 ; GIM7460 ; GIM7470

Exemption for interest on FOTRA securities, computation of profits

Case Law – Manufacturers Life Assurance Co v HM Inspector of Taxes. [2001] BTC 27

Expenses

Business entertainment and gifts

Legislation/Regulatory – ITEPA2003 s. 357(3)

Capital allowances

Legislation/Regulatory – CAA2001 s. 18, 256

HMRC Guidance – BIM100190 ; LAM04200 ; LAM07150

Controlled foreign companies

Legislation/Regulatory – ICTA88 Sch. 26, para. 1

Franked investment income

Legislation/Regulatory – F(No. 2)A97 s. 20, Sch. 3, para. 1

Fronting reinsurance commissions

Legislation/Regulatory – FA2008 Sch. 17, para. 5(4)-(7)

HMRC Guidance – GIM5050

Generally

Legislation/Regulatory – FA2004 s. 43, 44, 46

LAUTRO Indemnity Scheme, levies under

Legislation/Regulatory – SI 1992/2744 reg. 2

Old annuity contracts

Legislation/Regulatory – FA91 Sch. 7, para. 16 ; SI 2012/3008 reg. 3

Fijian, deductions from profits of unreported claims

Case Law – Southern Pacific Insurance Company (Fiji) Limited v. Commissioner of Inland Revenue (Fiji). [1986] BTC 181

Financial futures transactions

Case Law – HSBC Life (UK) Ltd v Stubbs (HMIT); Nationwide Life Ltd v Crisp (HMIT); Abbey Life Assurance Co Ltd v Colclough (HMIT); TSB Life Ltd v Colclough (HMIT); Lloyds TSB Life Assurance Co Ltd v Colclough (HMIT) (2001) Sp C 295

Financing-arrangement-funded transfers

Apportionments

Legislation/Regulatory – TCGA92 s. 210A(10A)

Charge in relevant period of account

Legislation/Regulatory – SI 2008/1926

Commencement of transfers

Legislation/Regulatory – FA2007 Sch. 9, para. 17

Deduction in subsequent periods of account

Legislation/Regulatory – SI 2008/1926

Distributions received by insurance companies

Legislation/Regulatory – ICTA88 s. 95ZA

Non-profit funds

Legislation/Regulatory – FA2012 Sch. 17, para. 16

Overseas life assurance business

Legislation/Regulatory – ITTOIA2005 s. 476(3)

Foreign branch exemption regime

Commentary – Tax Reporter ¶764-820

Foreign exchange gains and losses

Generally

Legislation/Regulatory – SI 1994/3231 reg. 1, 7-12

Loan relationships, meaning

Legislation/Regulatory – SI 1994/3231 reg. 1(3)

Foreign permanent establishment

Legislation/Regulatory – CTA2009 s. 18Q

France, restriction on freedom of establishment

Case Law – E.C. Commission v. French Republic (Case No. 270/83). [1987] BTC 8,035

Friendly societies

– see Friendly societies

Friendly societies, transfers to

– see Friendly societies

General insurance business

Accounting in foreign currencies and relevant discount rates

Legislation/Regulatory – SI 2001/1757 reg. 5

Controlled foreign companies

Legislation/Regulatory – SI 1999/1408 ; SI 2007/2145 reg. 12

General insurance reserves

Legislation/Regulatory – SI 2001/1757

Intra-group transfers of investments

Legislation/Regulatory – FA99 s. 81

Non-annual accounting

Legislation/Regulatory – FA98 Sch. 18, para. 85

Short-term business

Commentary – Tax Reporter ¶780-015

Single group treatment

Commentary – Tax Reporter ¶781-250

Technical provisions or reserves, appropriate amount

Legislation/Regulatory – FA2007 Sch. 11 ; HMRCBrf 04/09 ; SI 2009/1926

HMRC Guidance – GIM2050 ; GIM2180 ; GIM6000 ; GIM6080 ; GIM6150 ; GIM6180 ; GIM6500 ; GIM6510 ; GIM6520 ; GIM6530 ; GIM6540 ; GIM6550 ; GIM6560 ; GIM6570 ; GIM6580 ; GIM6590 ; GIM6620 ; GIM6670 ; GIM7190 ; GIM9160 ; LLM2120 ; LLM2190 ; LLM3000 ; LLM3030 ; LLM3210 ; LLM3300 ; LLM3310 ; LLM3330 ; LLM4240

Generally

Commentary – Tax Reporter ¶780-000

Gilt-edged securities

– see also Gilt-edged securities

Generally

Legislation/Regulatory – FA2012 s. 112

Gross payments of interest

Legislation/Regulatory – SI 1999/623

Gross roll-up business

Generally

Legislation/Regulatory – FA2007 s. 38, Sch. 7

HMRC Guidance – SAM31040

Transfers of business, losses

Legislation/Regulatory – FA2007 Sch. 7, para. 86

I - E tax basis (BLAGAB)

Acquisition expenses, meaning

Legislation/Regulatory – FA2012 s. 80

HMRC Guidance – LAM04100

Adjusted management expenses, calculation

Legislation/Regulatory – FA2012 s. 76

HMRC Guidance – CA23181 ; CFM64390 ; CFM74440 ; LAM04010 ; LAM04030 ; LAM04040 ; LAM04110 ; LAM04300 ; LAM04500 ; LAM07310 ; LAM15040

Apportionment rules

Legislation/Regulatory – FA2012 s. 97-101 ; SI 2012/3008 reg. 10, 11

Charge

Legislation/Regulatory – FA2012 s. 68

Chargeable gains, calculation

Legislation/Regulatory – FA2012 s. 75

HMRC Guidance – LAM03200 ; LAM03210 ; LAM03220 ; LAM03300 ; LAM03400 ; LAM05010 ; LAM11060 ; LAM15070

Deduction of allowable losses from chargeable gains

Legislation/Regulatory – FA2012 s. 95

HMRC Guidance – LAM03200 ; LAM03220 ; LAM03400 ; LAM03410 ; LAM06020

Deemed I - E receipts

Legislation/Regulatory – FA2012 s. 92

HMRC Guidance – LAM03030 ; LAM03500 ; LAM04020 ; LAM04040 ; LAM10110

Definitions

Legislation/Regulatory – FA2012 s. 74-85

HMRC Guidance – LAM03020 ; LAM03030 ; LAM03060 ; LAM03070 ; LAM03080 ; LAM03090 ; LAM04210 ; LAM05010 ; LAM10210 ; LAM11060

Derivative contracts

Legislation/Regulatory – FA2012 s. 88

General annuity business

Legislation/Regulatory – FA2012 s. 83-85

HMRC Guidance – LAM04200 ; LAM04210

Income, meaning

Legislation/Regulatory – FA2012 s. 74

Intangible fixed assets

Legislation/Regulatory – FA2012 s. 88

Loan relationships

Legislation/Regulatory – FA2012 s. 88

Losses from property businesses

Legislation/Regulatory – FA2012 s. 87

HMRC Guidance – CA23181 ; LAM03080 ; LAM04200 ; LAM15130

Minimum profits charge

Legislation/Regulatory – FA2012 s. 93, 94

HMRC Guidance – LAM03060 ; LAM03510 ; LAM04400 ; LAM07220 ; LAM07230 ; LAM07310

Miscellaneous income and losses

Legislation/Regulatory – FA2012 s. 89

HMRC Guidance – LAM03090 ; LAM04200

Ordinary management expenses

Legislation/Regulatory – FA2012 s. 77-82

HMRC Guidance – LAM03500 ; LAM04020 ; LAM04030 ; LAM04040 ; LAM04100 ; LAM04210

Overseas life insurance companies FOTRA profits

Legislation/Regulatory – FA2012 s. 96

Precedence of charge

Legislation/Regulatory – FA2012 s. 69

HMRC Guidance – LAM02050 ; LAM03030 ; LAM06010 ; LAM07200

Property businesses

Legislation/Regulatory – FA2012 s. 86, 87

HMRC Guidance – LAM03030 ; LAM03040 ; LAM03080 ; LAM07150

Risks re-insured

Legislation/Regulatory – FA2012 s. 90, 91

HMRC Guidance – LAM10200 ; LAM10210 ; LAM10220 ; LAM10230 ; LAM10240 ; LAM10300

Rules for calculating

Legislation/Regulatory – FA2012 s. 70

Spreading acquisition expenses

Legislation/Regulatory – FA2012 s. 79

HMRC Guidance – LAM04030 ; LAM04040 ; LAM04100 ; LAM04110 ; LAM04120 ; LAM04200 ; LAM04300 ; LAM07220

Immediate needs annuities, exemption from tax

Legislation/Regulatory – ITTOIA2005 s. 725, 726

Implications of Solvency II for

Commentary – Tax Reporter ¶781-250

Individual savings accounts (ISAs)

– see Individual savings accounts (ISAs)

Industrial assurance business

Commentary – Tax Reporter ¶780-000

Legislation/Regulatory – FA96 s. 167(7)

Insurance business transfer scheme, meaning

Legislation/Regulatory – FA2012 s. 139, 143

HMRC Guidance – BKLM250000 ; CFM44030 ; LAM03210 ; LAM10400 ; LAM12020 ; LAM13040

Insurance contracts

Commentary – Tax Reporter ¶780-030

Intangible fixed assets

Legislation/Regulatory – CTA2009 s. 901 ; FA2012 s. 88, Sch. 16, para. 179, Sch. 17, para. 24

HMRC Guidance – LAM14060

Interest and annuities

Legislation/Regulatory – FA96 Sch. 14, para. 24

HMRC Guidance – IHTM28155

Intra-group transfers of investments

Legislation/Regulatory – FA99 s. 81

Life assurance business, meaning

Legislation/Regulatory – FA2012 s. 57 ; SI 2012/3008 reg. 5, 6

Life policies

– see Insurance policies

Linked assets

Legislation/Regulatory – SI 2008/1942

Lloyd's underwriters

– see Lloyd's underwriters (corporate members); Lloyd's underwriters (individuals)

Loan relationships

Commentary – Tax Reporter ¶717-160 ; Tax Reporter ¶718-050

HMRC Guidance – CFM39220 ; CFM39230

Loan relationships, deficit on basic life assurance and general annuity business

Available profits, meaning

Legislation/Regulatory – CTA2009 s. 390

HMRC Guidance – LAM03060

Carry forward of surplus deficit to next accounting period

Legislation/Regulatory – CTA2009 s. 391

HMRC Guidance – CFM64390 ; LAM04030 ; LAM04200 ; LAM09010 ; LAM09030 ; LAM15090

Claim to carry back deficit

Legislation/Regulatory – CTA2009 s. 389

HMRC Guidance – CFM64360 ; COM50030 ; CTM80400 ; CTM82100 ; LAM03060 ; LAM03410 ; LAM09010 ; LAM09030 ; LAM15090

Deficit set off against income and gains of deficit period

Legislation/Regulatory – CTA2009 s. 388

HMRC Guidance – LAM03060 ; LAM03520 ; LAM09010 ; LAM09030 ; LAM15090

Generally

Legislation/Regulatory – CTA2009 s. 386, 387

Loan relationships, transfers of business

Fair value accounting

Legislation/Regulatory – CTA2009 s. 341

HMRC Guidance – CFM34070 ; CFM41100 ; GIM9170

Generally

Legislation/Regulatory – CTA2009 s. 335, 337, 338

HMRC Guidance – CFM34010 ; CFM34040 ; CFM53030 ; CFM54020 ; CFM61020 ; LAM12020

Notional carrying value

Legislation/Regulatory – CTA2009 s. 340

HMRC Guidance – CFM34010 ; CFM34050 ; CFM34110 ; CFM41100 ; CFM62470 ; CFM76048 ; GIM9170

Transferor party to avoidance

Legislation/Regulatory – CTA2009 s. 347, Sch. 2, para. 67

HMRC Guidance – CFM34050

Long term business fixed capital

Legislation/Regulatory – FA2012 s. 122

HMRC Guidance – LAM03210 ; LAM11060

Long term business, meaning

Legislation/Regulatory – FA2012 s. 63 ; SI 2012/3008 reg. 7

HMRC Guidance – CTM40320 ; LAM01010 ; LAM01140

Loss relief (BLAGAB trade losses)

Carry forward, pre-1 April 2017

Legislation/Regulatory – FA2012 s. 124, Sch. 17, para. 29-33

HMRC Guidance – CTM05090 ; CTM82140 ; LAM07310 ; LAM14080 ; LAM15040 ; LAM15410

General rule

Legislation/Regulatory – FA2012 s. 123

Group relief

Legislation/Regulatory – FA2012 s. 125

Policyholders' share of I - E profit, no relief against

Legislation/Regulatory – FA2012 s. 127

Restrictions, non-trading deficit

Legislation/Regulatory – FA2012 s. 126

HMRC Guidance – LAM07310 ; LAM15040

Transitional provisions

Legislation/Regulatory – FA2012 Sch. 17, para. 29-34

Machinery and plant allowances

Apportionment of allowances and charges

Legislation/Regulatory – CAA2001 s. 255, 257 ; SI 2012/3008 reg. 4

HMRC Guidance – LAM05040 ; LAM07150

Different categories of business

Legislation/Regulatory – CAA2001 s. 256

Generally

Legislation/Regulatory – CAA2001 s. 254

HMRC Guidance – CA29440 ; CTM08450

Investment assets

Legislation/Regulatory – CAA2001 s. 545

HMRC Guidance – LAM07150

Management assets

Legislation/Regulatory – CAA2001 s. 544

HMRC Guidance – LAM07150

Special leasing

Legislation/Regulatory – CAA2001 s. 261

HMRC Guidance – CTM02350

Transfer of business

Legislation/Regulatory – CAA2001 s. 560, Sch. 3, para. 111

HMRC Guidance – CA15500 ; LAM12020

Management expenses, deductibility

Case Law – Johnson (HM Inspector of Taxes) v. Prudential Assurance Co Ltd. [1998] BTC 112 ; Johnson (HM Inspector of Taxes) v Prudential Assurance Co Ltd. [1996] BTC 375

Meaning

Legislation/Regulatory – FA2012 s. 65 ; FA95 s. 52(5)

HMRC Guidance – BKLM250000 ; CFM44030 ; LAM01150 ; LAM10100 ; LAM10400 ; LAM12020

Memorandum Form 40 in respect of with-profits part of fund, separate revenue account required to be prepared

Case Law – Revenue and Customs Commissioners v Legal & General Assurance Society Ltd. [2010] BTC 1,701

Net investment yield

Legislation/Regulatory – SI 1978/1159 reg. 4

New Zealand, interest on overdue premiums

Case Law – Commissioner of Inland Revenue v Colonial Mutual Life Assurance Society Ltd. [2002] BTC 9

Non-basic life assurance and general annuity business (BLAGAB)

Allowable losses used to reduce I - E profit

Legislation/Regulatory – FA2012 s. 95

Charge to tax on profits of

Legislation/Regulatory – FA2012 s. 71

Separate business, treated as

Legislation/Regulatory – FA2012 s. 66 ; M09/13 ; SI 2012/3008 reg. 8, 9

Transfers of long-term business

Legislation/Regulatory – FA2012 s. 131

HMRC Guidance – LAM13040

Non-resident companies, UK representatives

Commentary – Tax Reporter ¶764-540

Non-residents, tax representatives

Legislation/Regulatory – FA98 s. 87 ; ICTA88 s. 552A, 552B ; SI 1999/881

Non-statutory arrangements for groups

Legislation/Regulatory – FA99 s. 81

Offshore funds

Controlled foreign companies, avoidance of double charges

Legislation/Regulatory – SI 2012/3044

Generally

Legislation/Regulatory – SI 2009/3001 reg. 27 ; TCGA92 s. 212, 213

Overseas life assurance business

Determination of

Legislation/Regulatory – SI 1995/3237 reg. 4-11

Excluded business

Legislation/Regulatory – SI 2000/2089

Friendly societies, exempt business

Legislation/Regulatory – SI 1995/3237 reg. 3A

Information

Legislation/Regulatory – SI 1995/3237 reg. 21-23

Meaning

Legislation/Regulatory – FA2012 s. 61

Records, keeping

Legislation/Regulatory – SI 1995/3237 reg. 21-23

Sanctions

Legislation/Regulatory – SI 1995/3237 reg. 18-20

Specified event, meaning

Legislation/Regulatory – SI 1995/3237 reg. 3

Tax credits

Legislation/Regulatory – SI 1995/3238

Territories in which policy holders reside

Legislation/Regulatory – SI 1995/3237 reg. 12-16

Overseas life insurance companies

– see Overseas life insurance companies

Participating funds, apportionment of receipts

Legislation/Regulatory – SI 2003/1860

Pension business

Double taxation relief

Case Law – Legal and General Assurance Society Ltd v Revenue and Customs Commissioners. [2006] BTC 713

Entitlement to tax credits

Case Law – Bibby (HM Inspector of Taxes) v Prudential Assurance Co Ltd; Oakes (HM Inspector of Taxes) v Equitable Life Assurance Society. [2000] BTC 158

Excessive provisional repayments, interest

Legislation/Regulatory – FA98 s. 90

Exemption from tax

Legislation/Regulatory – F(No. 2)A97 Sch. 3, para. 6(7)-(9)

Manufactured payments

Legislation/Regulatory – SI 1995/3036

Meaning

Legislation/Regulatory – FA2012 s. 58

Notional repayment, meaning

Legislation/Regulatory – SI 1992/2326 reg. 2

Pay and file

Legislation/Regulatory – SI 1992/2326

Provisional repayments

Legislation/Regulatory – FA96 s. 169 ; SI 1992/2326

Reduced entitlement during transitional period

Legislation/Regulatory – SI 1992/2326

Tax credits

Legislation/Regulatory – FA2001 s. 87(1), (2)

Transitional provisions

Legislation/Regulatory – SI 1992/2326

Permanent establishment, separate enterprise principle

Legislation/Regulatory – CTA2009 s. 21

HMRC Guidance – BKLM378100 ; BKLM378400 ; CFM33090 ; INTM267040 ; INTM267100 ; INTM267120 ; INTM267130 ; INTM267140 ; INTM267622 ; INTM267705 ; INTM267707 ; INTM267761 ; INTM267762 ; INTM267769 ; INTM267772 ; INTM267776 ; INTM267781 ; INTM267784 ; INTM267786 ; INTM267787 ; INTM554040

Permanent health insurance business (PHI)

Generally

Legislation/Regulatory – FA2012 s. 72

HMRC Guidance – LAM02040

Meaning

Legislation/Regulatory – FA2012 s. 63 ; SI 2012/3008 reg. 7

Personal pension schemes

– see Personal pension schemes

Policies

– see Insurance policies

Policy holders' share of I - E profits

Adjusted amount, meaning

Legislation/Regulatory – FA2012 s. 104

HMRC Guidance – LAM06020 ; LAM06030 ; LAM06050

Closing deferred policyholder tax balance, meaning

Legislation/Regulatory – FA2012 s. 108

Deduction for current policyholder tax

Legislation/Regulatory – FA2012 s. 106

HMRC Guidance – LAM07110 ; LAM07210

Determination

Legislation/Regulatory – FA2012 s. 103

HMRC Guidance – CTM05080 ; LAM02050 ; LAM03410 ; LAM06020 ; LAM06030 ; LAM06040 ; LAM06050 ; LAM07310

Expenses or receipts for deferred policyholder tax

Legislation/Regulatory – FA2012 s. 107

HMRC Guidance – LAM07220

Non-taxable distributions, meaning

Legislation/Regulatory – FA2012 s. 105

HMRC Guidance – LAM06030 ; LAM06040 ; LAM06050

Rate of tax

Legislation/Regulatory – FA2012 s. 102

Shareholders' share, meaning

Legislation/Regulatory – FA2012 s. 105

Policy holders' share of profits

Calculation of profits

Legislation/Regulatory – SI 2003/2082 reg. 2, 3

Change in business of company

Legislation/Regulatory – SI 2003/2082 reg. 3A

Profits derived from contract of reinsurance

Case Law – Barrett (HM Inspector of Taxes) v Royal London Mutual Insurance Society Ltd. [2002] BTC 346 ; Barrett (HM Inspector of Taxes) v Royal London Mutual Insurance Society Ltd. [2003] BTC 368

Protection business

Meaning

Legislation/Regulatory – FA2012 s. 62 ; M08/13

Transitional provisions

Legislation/Regulatory – FA2012 Sch. 17, para. 21

HMRC Guidance – LAM14040

Provisional repayment regime

Legislation/Regulatory – FA2001 s. 87(1), (2)

Qualifying interest in possession

Legislation/Regulatory – IHTA84 s. 59(3)

Qualifying lender

Legislation/Regulatory – ICTA88 s. 376

Real estate investment trusts

Commentary – Tax Reporter ¶788-850

Reinsurance

Pure reinsurers

Commentary – Tax Reporter ¶781-050

Reinsurance business

Amounts of investment return which are less than zero

Legislation/Regulatory – SI 1995/1730 reg. 7A

Ascertainment of investment return, prescribed dates of payment

Legislation/Regulatory – SI 1995/1730 reg. 8

Basic life assurance and general annuity business, investment returns

Legislation/Regulatory – SI 1995/1730 reg. 10

Calculation of investment return in final accounting period

Legislation/Regulatory – SI 1995/1730 reg. 6

Calculation of investment return in first accounting period

Legislation/Regulatory – SI 1995/1730 reg. 4

Calculation of investment return in second and subsequent periods

Legislation/Regulatory – SI 1995/1730 reg. 5

Calculation of investment return in sole accounting period

Legislation/Regulatory – SI 1995/1730 reg. 3

Exclusion from meaning of life reinsurance business

Legislation/Regulatory – SI 1995/1730 reg. 11, 11A

Exclusion of certain reinsurance arrangements

Legislation/Regulatory – SI 1995/1730 reg. 9, 12

Exclusion of policy and contract

Legislation/Regulatory – SI 1995/1730 reg. 10

Prescribed percentage rates of return

Legislation/Regulatory – SI 1995/1730 reg. 7

Transfers effected by novation or insurance business transfer schemes

Legislation/Regulatory – SI 1995/1730 reg. 13

Remediation of contaminated land

Company responsible for contamination

Legislation/Regulatory – CTA2009 s. 1163

I minus E basis

Legislation/Regulatory – CTA2009 s. 1160, 1161

HMRC Guidance – LAM04030

Qualifying expenditure

Legislation/Regulatory – CTA2009 s. 1161-1163

Tax credits, entitlement and payment

Legislation/Regulatory – CTA2009 s. 1164-1168

HMRC Guidance – LAM04030

Remediation of contaminated/derelict land

Commentary – Tax Reporter ¶715-770 ; Tax Reporter ¶715-775

Research and development

Legislation/Regulatory – CTA2009 s. 104U, 104V, 1080, 1081

HMRC Guidance – CIRD89600

Sale and lease-back of land, restriction of deductions for expenses

Aggregation and apportionment

Legislation/Regulatory – CTA2010 s. 841

Associated persons

Legislation/Regulatory – CTA2010 s. 847

HMRC Guidance – BIM61301

Carry-forward of parts of payments

Legislation/Regulatory – CTA2010 s. 840

Commercial rent, comparison with payments other than rent

Legislation/Regulatory – CTA2010 s. 845

HMRC Guidance – BIM61305

Commercial rent, comparison with rent under lease

Legislation/Regulatory – CTA2010 s. 844

HMRC Guidance – BIM61305

Deduction not to exceed commercial rent

Legislation/Regulatory – CTA2010 s. 839

HMRC Guidance – BLM32235

Exclusion of service charges

Legislation/Regulatory – CTA2010 s. 843

HMRC Guidance – BIM61315

Land outside the UK

Legislation/Regulatory – CTA2010 s. 848

Lease, meaning

Legislation/Regulatory – CTA2010 s. 846

HMRC Guidance – BIM61305 ; BLM70410

Payments made for later periods

Legislation/Regulatory – CTA2010 s. 842

Rent, meaning

Legislation/Regulatory – CTA2010 s. 846

Securitisation companies

Legislation/Regulatory – SI 2007/3402

Share pooling rules

Overseas life insurance companies

Legislation/Regulatory – FA2012 s. 120, 121

HMRC Guidance – LAM03230 ; LAM11060 ; LAM12020

UK life insurance companies

Legislation/Regulatory – FA2012 s. 119, 121

Singapore, investments suitable in Malaysia

Case Law – Great Eastern Life Assurance Co. Ltd. v. Director General of Inland Revenue (Malaysia). [1986] BTC 372

Solvency regime

Commentary – Tax Reporter ¶781-165

Substantial shareholdings exemption

Legislation/Regulatory – TCGA92 Sch. 7AC, para. 17

Tax representatives

Legislation/Regulatory – FA98 s. 87 ; ICTA88 s. 552A, 552B ; SI 1999/881

Tax-exempt business

Legislation/Regulatory – SI 2007/2145

Trade unions

– see Trade unions

Transfer from capital reserve, receipts taken into account

Case Law – Scottish Widows plc v R & C Commrs. [2010] BTC 793 ; Scottish Widows plc v Revenue and Customs Commissioners. [2011] BTC 413

Transfer of assets

Groups of companies

Legislation/Regulatory – FA2012 s. 118

Overseas life insurance companies

Legislation/Regulatory – FA2012 s. 117

HMRC Guidance – LAM03210 ; LAM12020 ; LAM13040

Transitional provisions

Legislation/Regulatory – FA2012 Sch. 17, para. 25

UK life insurance companies

Legislation/Regulatory – FA2012 s. 116

Transfers of basic life assurance and general annuity business (BLAGAB)

Anti-avoidance provisions

Legislation/Regulatory – FA2012 s. 132

Clearance procedure

Legislation/Regulatory – FA2012 s. 133, 134

HMRC Guidance – LAM13080

Demutalisation

Legislation/Regulatory – FA2012 s. 129 ; M10/13

Intra-group transfers

Legislation/Regulatory – FA2012 s. 129 ; M10/13

Meaning of group of companies

Legislation/Regulatory – FA2012 s. 135

Non-BLAGAB long-term business

Legislation/Regulatory – FA2012 s. 131

Non-group companies, present value of in-force business

Legislation/Regulatory – FA2012 s. 130 ; M10/13

HMRC Guidance – LAM07040 ; LAM07120 ; LAM13060 ; LAM13070

Transferee, relief for spread acquisition expenses

Legislation/Regulatory – FA2012 s. 128

Transfers of business

Chargeable gains

Legislation/Regulatory – TCGA92 s. 211, 211ZA

Generally

Commentary – Tax Reporter ¶707-160 ; Tax Reporter ¶781-755

Gross roll-up business losses

Legislation/Regulatory – FA2007 Sch. 7, para. 86

Groups of companies

Legislation/Regulatory – FA2012 s. 118

Losses

Legislation/Regulatory – FA2007 Sch. 7, para. 85, 86, Sch. 9, para. 2

Non-residents, deemed disposals

Legislation/Regulatory – TCGA92 s. 25(4)

Non-technical account

Legislation/Regulatory – FA2009 Sch. 23, para. 1

Old annuity contracts

Legislation/Regulatory – FA91 Sch. 7, para. 16 ; SI 2012/3008 reg. 3

Receipts brought into account

Legislation/Regulatory – FA2003 Sch. 3, para. 20(3), (4) ; SI 2003/2082

HMRC Guidance – SDLTM00310 ; SDLTM00520 ; SDLTM00530 ; SDLTM00550 ; SDLTM00570 ; SDLTM00570A ; SDLTM30220 ; SDLTM34220

Reinsurance business

Legislation/Regulatory – SI 1995/1730 reg. 13

Transfer of unused losses

Legislation/Regulatory – TCGA92 s. 211ZA

Transitional provisions

Legislation/Regulatory – FA2012 Sch. 17, para. 36, 37

Transitional relief for old general annuity contracts

Legislation/Regulatory – FA91 Sch. 7, para. 16 ; SI 2012/3008 reg. 3

Unit trusts

Deemed disposals

Legislation/Regulatory – FA93 s. 91(1)

Generally

Legislation/Regulatory – SI 2007/2145 reg. 13 ; TCGA92 s. 212

Spreading of gains and losses

Legislation/Regulatory – TCGA92 s. 213

Venture capital investment partnership, chargeable gains

Apportionment in case of part disposal

Legislation/Regulatory – TCGA92 Sch. 7AD, para. 6

Commencement

Legislation/Regulatory – TCGA92 Sch. 7AD, para. 10-12

Cost of the single asset

Legislation/Regulatory – TCGA92 Sch. 7AD, para. 4

Deemed disposal of single asset in case of distribution

Legislation/Regulatory – TCGA92 Sch. 7AD, para. 5

Definitions

Legislation/Regulatory – TCGA92 Sch. 7AD, para. 9

Disposal of asset giving rise to offshore income gain

Legislation/Regulatory – TCGA92 Sch. 7AD, para. 7

Generally

Legislation/Regulatory – TCGA92 s. 211A, Sch. 7AD

Interest in relevant assets treated as single asset

Legislation/Regulatory – TCGA92 Sch. 7AD, para. 3

Negligible value claim, exclusion

Legislation/Regulatory – TCGA92 Sch. 7AD, para. 8

Transitional provisions

Legislation/Regulatory – TCGA92 Sch. 7AD, para. 10-12

Venture capital investment partnership, meaning

Legislation/Regulatory – TCGA92 Sch. 7AD, para. 2