Section 269ZFC Restriction on deductions of non-BLAGAB allowable losses from BLAGAB chargeable gainsF1F2
United Kingdom
This section has effect for determining the taxable total profits of an insurance company for an accounting period.
The sum of any deductions of non-BLAGAB allowable losses from the shareholders’ share of BLAGAB chargeable gains made by an insurance company for an accounting period under section 2A(1)(b) of TCGA 1992, as permitted by section 210A(2A)(b) of that Act, may not exceed the relevant maximum.
In this section, the “relevant maximum” means the sum of—
50% of the company’s relevant BLAGAB chargeable gains for the accounting period, and
the amount of the company’s BLAGAB deductions allowance for the accounting period.
A company’s “relevant BLAGAB chargeable gains” for an accounting period are—
the shareholders’ share of the BLAGAB chargeable gains for the accounting period, after any reduction under section 210A(2A)(a) of TCGA 1992, less
the amount of the company’s BLAGAB deductions allowance for the accounting period.
But if the allowance mentioned in paragraph (b) exceeds the shareholders’ share of the BLAGAB chargeable gains mentioned in paragraph (a), the company’s “relevant BLAGAB chargeable gains” for the accounting period are nil.
A company’s “BLAGAB deductions allowance” for an accounting period—
is so much of the company’s deductions allowance for the period as is specified in the company’s tax return as its BLAGAB deductions allowance for the period, and
accordingly, is nil if no amount of the company’s deductions allowance for the period is so specified.
An amount specified under subsection (5)(a) as the company’s BLAGAB deductions allowance for an accounting period may not exceed the difference between—
the amount of the company’s deductions allowance for the period, and
the total of any amounts specified for the period under section 269ZB(7)(a) (trading profits deductions allowance), section 269ZBA(5)(a) (chargeable gains deductions allowance) and section 269ZC(5)(a) (non-trading income profits deductions allowance).
In this section, “BLAGAB chargeable gains”, “insurance company” and “the shareholders’ share of BLAGAB chargeable gains” have the same meaning as in section 210A of TCGA 1992.
Annotations
Textual amendments
- F1
Pt. 7ZA inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 16
- F2
S. 269ZFC inserted (with effect in relation to accounting periods beginning on or after 1.4.2020) by Finance Act 2020 (c. 14), Sch. 4 paras. 13, 42 (with Sch. 4 paras. 43-46)
Notes on Part 7ZA
Modifications
- C1
Pt. 7ZA modified (retrospective to 29.10.2018) by Finance Act 2020 (c. 14), Sch. 4 para. 46
- C2
Pt. 7ZA modified by 1992 c. 12, Sch. 7A para. 6(1C) (as inserted (with effect in relation to accounting periods beginning on or after 1.4.2020) by Finance Act 2020 (c. 14), Sch. 4 paras. 18(4), 42 (with Sch. 4 paras. 43-46))
- C3
Pt. 7ZA applied (with modifications) (with effect in accordance with Sch. 4 para. 43(1) of the amending Act) by Finance Act 2020 (c. 14), Sch. 4 para. 44(4)
- C4
Pt. 7ZA applied (with modifications) (with application in accordance with Sch. 4 para. 45(1)(2) of the amending Act) by Finance Act 2020 (c. 14), Sch. 4 para. 45(4)
- C5
Pt. 7ZA disapplied (24.2.2022) by Finance Act 2022 (c. 3), Sch. 2 para. 21
Notes on Modifications for certain insurance companies
Textual amendments
- F2
S. 269ZFB and cross-heading inserted (with effect in accordance with Sch. 10 para. 32 of the amending Act) by Finance Act 2019 (c. 1), Sch. 10 para. 9