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Section 256 Different giving effect rules for BLAGABF8C1C2

United Kingdom

(1)

Subsection (2) applies if a company—

(a)

carries on basic life assurance and general annuity business, and

F1(b)

is charged to tax F2in accordance with the I - E rules in respect of F3that business.

(2)

If this subsection applies—

(a)

any allowances (or parts of allowances) to which the company is entitled in respect of the basic life assurance and general annuity business are to be given effect by treating them F4for the purposes of section 76 of FA 2012 as deemed BLAGAB management expenses for the chargeable period in question, and

(b)

any charges (or parts of charges) to which the company is liable in respect of that business are to be given effect by treating the F5company as receiving for the chargeable period in question an amount which is equal to the amount of the charges (or parts of charges) and to which the charge to corporation tax on income applies.

F6(3)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7(4)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations

Textual amendments

F1

S. 256(1)(b) substituted (with effect in accordance with s. 39(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 8 para. 23 (with Sch. 8 Pt. 2)

F2

Words in s. 256(1)(b) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 99(2)(a)

F3

Words in s. 256(1)(b) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 99(2)(b)

F4

Words in s. 256(2)(a) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 99(3)

F5

Words in s. 256(2)(b) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 492(2) (with Sch. 2 Pts. 1, 2)

F6

S. 256(3) omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 99(4)

F7

S. 256(4) omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 99(4)

F8

Word in s. 256 heading substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 99(5)

Modifications

C1

S. 256 modified (1.1.2002) by S.I. 1997/473, reg. 53C (as inserted by S.I. 2001/3975, reg. 8)

C2

S. 256 modified (with effect in accordance with reg. 1(2) of the commencing S.I.) by The Friendly Societies (Modification of the Corporation Tax Acts) Regulations 2005 (S.I. 2005/2014), regs. 1(1), 44

Notes on Part 2

Modifications

C1

Pt. 2 modified (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 10 para. 12 (with Sch. 10 para. 17(1)); S.I. 2003/120, art. 2, Sch. (with arts. 3 4) (as amended (20.2.2003) by S.I. 2003/333, art. 14)

C2

Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 10, 22 (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1

C3

Pt. 2 modified (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 9(2), 21(2) (with s. 38(2)); S.I. 2004/2575, art. 2(1) , Sch. 1

C4

Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 4 para. 4 ; S.I. 2004/2575 , art. 2(1) , Sch. 1

C5

Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 19

C6

Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 35

C7

Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 paras. 36, 37

C8

Pt. 2 modified (21.7.2009) by Finance Act 2009 (c. 10), s. 24

C9

Pt. 2 modified (17.7.2013) by Finance Act 2013 (c. 29), s. 73(7)-(11) (with s. 73(6))

C10

Pt. 2 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 9(1)(a)

Notes on Long-term business

Textual amendments

F1

Words in s. 254 heading substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 96