Commentary

D7.460 Ordinary BLAGAB management expenses

Corporate tax
Corporate tax | Commentary

D7.460 Ordinary BLAGAB management expenses

Corporate tax | Commentary

D7.460 Ordinary BLAGAB management expenses

Step 1 of the calculation of adjusted BLAGAB management expenses requires that the calculation begins with the ordinary BLAGAB management expenses for the accounting period.

In order to qualify as ordinary BLAGAB management expenses, amounts must be:

  1.  

    (a)     debited in the company's accounts prepared in accordance with generally accepted accounting practice for the period in question

  2.  

    (b)     expenses of the company's long-term business referable to BLAGAB under its commercial allocation methodology (see D7.432), and

  3.  

    (c)     must not be excluded amounts1

In order to deal with the spreading of acquisition expenses in the accounts (where they will normally be described as deferred acquisition costs or DAC) which are subject to a specific spreading rule for tax (see D7.464), any such amounts incurred in the accounting period in question but debited in the accounts for subsequent periods are instead treated as if they were debited in full in

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