Commentary

D7.407 Taxation of BLAGAB

Corporate tax
Corporate tax | Commentary

D7.407 Taxation of BLAGAB

Corporate tax | Commentary

D7.407 Taxation of BLAGAB

The rules in this division apply for accounting periods beginning on or after 1 January 2013. For accounting periods beginning before 1 January 2013 see Division D7.5.

A company carrying on BLAGAB in conjunction with other long-term business is deemed to be carrying on two separate businesses for corporation tax, one of which consists solely of its BLAGAB1. Instead of being charged on the trade profit of its BLAGAB such a company is instead charged to corporation tax on the I-E profit arising on that business2.

The charge to corporation tax on the I-E profit takes primacy

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