# The Insurance Companies (Corporation Tax Acts) (Amendment) Order 2007, Article 4: Amendment of the Income and Corporation Taxes Act 1988


(1) Amend section 432A (apportionment of income and gains) as follows.
(2) In subsection (6)—
(a) in paragraph (a)(i) after “that category of business” insert “(but taking that mean to be nil if it would otherwise be below nil)”;
(b) at the end insert “This is subject to subsection (6AA) below.”.
(3) In subsection (6A)—
(a) in paragraph (a)(i) after “closing liabilities of the category” insert “(but taking that mean to be nil if it would otherwise be below nil)”;
(b) at the end insert “This is subject to subsection (6AA) below.”
(4) After subsection (6A) insert—
“(6AA) If the denominator found in accordance with either subsection (6)(b) or (6A)(b) above is nil then, for the purposes of subsection (5) above, “the relevant fraction” in relation to a category of business is such fraction as is just and reasonable.”.
(5) In subsection (8)—
(a) in paragraph (a)(i), in the definition of A, after “business in question” insert “(but taking that amount to be nil if it would otherwise be below nil)”;
(b) at the end insert “This is subject to subsection (8ZA) below.”
(6) After subsection (8) insert—
“(8ZA) If for the purposes of subsection (8)(a) above either B or D is nil then, in subsections (6) and (6A) above, “appropriate part”, in relation to the free assets amount, means the part of that amount which bears to the whole such proportion as is just and reasonable.”.

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Source: https://www.legislation.gov.uk/uksi/2007/1031/article/4 (the official version)
Page: https://openlegislation.uk/insurance-companies-corporation-tax-acts-amendment-order-2007/article-4
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.