Commentary

D7.435 General principles

Corporate tax
Corporate tax | Commentary

D7.435 General principles

Corporate tax | Commentary

I-E Basis—Calculating the I-E profit

D7.435 General principles

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.

The legislation contains a comprehensive set of rules for calculating whether a company that writes BLAGAB has an I-E profit or excess BLAGAB expenses (effectively representing an I-E 'loss') using a six step process.

Step 1 requires the calculation of the chargeable income for the accounting period that is referable to BLAGAB under the company's commercial allocation methodology (see D7.432).

Step 2 requires the calculation of BLAGAB

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