Commentary

D4.1006 Life assurance business: Credit relief restriction

Corporate tax
Corporate tax | Commentary

D4.1006 Life assurance business: Credit relief restriction

Corporate tax | Commentary

D4.1006 Life assurance business: Credit relief restriction

For accounting periods beginning after 31 March 2000:

  1.  

    (a)     foreign tax is allocated between categories of business, and the limit for credit for each category is considered separately1; and

  2.  

    (b)     for trading computations, ie all categories except basic life assurance and general annuity business (BLAGAB), the limit on credit is based on only a proportion of the income allocated to the business2.

In summary, the legislation establishes how foreign tax, in relation to an item of relevant income is allocated between categories of business, and it provides that the amount of credit against corporation

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