Commentary

D7.5131 Taxation of PHI—trading principles apply

Corporate tax
Corporate tax | Commentary

D7.5131 Taxation of PHI—trading principles apply

Corporate tax | Commentary

D7.5131 Taxation of PHI—trading principles apply

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.

Since it is not life insurance, PHI is taxed on normal trading principles albeit with a number of exceptions. Unlike computations prepared under the life insurance trade profit provisions, the starting point for calculating the PHI tax charge is the profits in the company's statutory accounts rather than the regulatory surplus emerging. Statement of Practice SP 4/95 (see Part G1) published in March 1995 sets out HMRC's

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