Commentary

D7.5112 Needs basis

Corporate tax
Corporate tax | Commentary

D7.5112 Needs basis

Corporate tax | Commentary

D7.5112 Needs basis

The rules in this division apply for accounting periods beginning before 1 January 2013. For accounting periods beginning on or after 1 January 2013 see Division D7.4.

The implied investment return needed is calculated by reference to the following four amounts:

  1.  

         S: the surplus arising on all categories of business in the relevant revenue account.

  2.  

         AS: the amount of the total surplus which has been allocated by way of bonus to with-profits policy holders.

  3.  

         CAS: the amount of the total bonuses which have been allocated to with-profits policy holders of the company's life assurance

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