Commentary

D7.537 Excess adjusted life assurance trade profits

Corporate tax
Corporate tax | Commentary

D7.537 Excess adjusted life assurance trade profits

Corporate tax | Commentary

D7.537 Excess adjusted life assurance trade profits

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.

Following the move to the mandatory I-E basis (see D7.506) and the repeal of the minimum profits test (see D7.5126) a mechanism is needed to ensure that the taxable profits of a company subject to the I-E basis of taxation do not fall below the company's actual trading profits. This goal is achieved by bringing an amount into charge in the I-E computation equal to the difference between the I-E profits (adjusted to include exempt distributions referable to BLAGAB) and the profits calculated under the life assurance trade profit provisions after offset of loss relief1. This amount is referred to as the excess

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