# Finance Act 2012, Section 105: Meaning of “BLAGAB non-taxable distributions” and “shareholders' share”


(1) This section explains for the purposes of section 104 what is meant by—
“BLAGAB non-taxable distributions”, and
“the shareholders' share” of BLAGAB non-taxable distributions.
(2) Non-taxable distributions are “BLAGAB” non-taxable distributions if they are referable, in accordance with Chapter 7, to the company's basic life assurance and general annuity business.
(3) The “shareholders' share” of the BLAGAB non-taxable distributions receivable by the company in the accounting period is the relevant proportion of those distributions.
(4) The relevant proportion is—
BTP BNTD + 1where—
BTP is the amount of the BLAGAB trade profit of the company for the accounting period,
BNTD is the amount of the BLAGAB non-taxable distributions receivable by the company in the accounting period, and
I is the total of the amounts given by the calculations required by steps 1 to 3 in section 73 (I - E basis: income referable to BLAGAB) in relation to the company's basic life assurance and general annuity business for the accounting period.
(5) If BTP exceeds BNTD + I, the shareholders' share of the BLAGAB non-taxable distributions receivable by the company in the accounting period is the whole of those distributions.

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Source: https://www.legislation.gov.uk/ukpga/2012/14/section/105 (the official version)
Page: https://openlegislation.uk/finance-act-2012/section-105
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.