Change 1 Article Choose an article Title and introductory text 1 Charge for 2012-13 and rates for 2012-13 and subsequent tax years 2 Basic rate limit for 2012-13 3 Personal allowance for 2012-13 for those aged under 65 4 Personal allowances from 2013 5 Main rate of corporation tax for financial year 2012 6 Charge and main rate for financial year 2013 7 Small profits rate and fractions for financial year 2012 8 High income child benefit charge 9 Post-cessation trade or property relief: tax-generated payments or events 10 Property loss relief against general income: tax-generated agricultural expenses 11 Gains from contracts for life insurance etc 12 Settlements: income originating from settlors other than individuals 13 Champions League final 2013 14 Cars: security features not to be regarded as accessories 15 Termination payments to MPs ceasing to hold office 16 Employment income exemptions: armed forces 17 Taxable benefits: “the appropriate percentage” for cars for 2014-15 18 Qualifying time deposits 19 Profits arising from the exploitation of patents etc 20 Relief for expenditure on R&D 21 Real estate investment trusts 22 Treatment of the receipt of manufactured overseas dividends 23 Loan relationships: debts becoming held by connected company 24 Companies carrying on businesses of leasing plant or machinery 25 Corporate members of Lloyd's: stop-loss insurance and quota share contracts 26 Abolition of relief for equalisation reserves: general insurers 27 Election to accelerate receipts under s.26(4) 28 Deemed receipts under s.26(4): double taxation relief 29 Transfer of whole or part of the business 30 Abolition of relief for equalisation reserves: Lloyd's corporate members etc 31 Tax treatment of financing costs and income 32 Group relief: meaning of “normal commercial loan” 33 Company distributions 34 Annual exempt amount 35 Foreign currency bank accounts 36 Collective investment schemes: chargeable gains 37 Roll-over relief 38 Seed enterprise investment scheme 39 Enterprise investment scheme 40 Venture capital trusts 41 Plant and machinery: restricting exception for manufacturers and suppliers 42 Plant and machinery allowances: anti-avoidance 43 Plant and machinery allowances: fixtures 44 Expenditure on plant and machinery for use in designated assisted areas 45 Allowances for energy-saving plant and machinery 46 Plant and machinery: long funding leases 47 Foreign income and gains 48 Employer asset-backed pension contributions etc 49 Gifts to the nation 50 Gift aid: giving through self-assessment return 51 Relief for gift aid and other income of charities etc 52 Meaning of “community amateur sports club” 53 Site restoration payments 54 Changes of accounting policy 55 Overview 56 Meaning of “life assurance business” 57 Meaning of “basic life assurance and general annuity business” 58 Section 57: meaning of “pension business” 59 Section 57: meaning of “child trust fund business” 60 Section 57: meaning of “individual savings account business” 61 Section 57: meaning of “overseas life assurance business” 62 Section 57: meaning of “protection business” 63 Meaning of “long-term business” and “PHI business” 64 Meaning of “contract of insurance” and “contract of long-term insurance” 65 Meaning of “insurance company” 66 Separate businesses for BLAGAB and other long-term business 67 Exception where BLAGAB small part of long-term business 68 Charge to tax on I - E profit 69 Exclusion of charge under s.35 of CTA 2009 etc 70 Rules for calculating I - E profit or excess BLAGAB expenses 71 Charge to tax on profits of non-BLAGAB long-term business 72 Companies carrying on only PHI business 73 The I - E basis 74 Meaning of “income” 75 Meaning of “BLAGAB chargeable gains” etc 76 Meaning of “adjusted BLAGAB management expenses” 77 Section 76: meaning of “ordinary BLAGAB management expenses” etc 78 Section 76: meaning of other expressions 79 Spreading of acquisition expenses 80 Section 79: meaning of “acquisition expenses” 81 Amounts treated as ordinary BLAGAB management expenses 82 Restrictions in relation to ordinary BLAGAB management expenses 83 General annuity business 84 General annuity business: meaning of “steep-reduction annuity” etc 85 General annuity business: payments made in pre-1992 accounting periods 86 Separate property businesses for BLAGAB etc 87 Losses from property businesses where land held for long-term business 88 Loan relationships, derivative contracts and intangible fixed assets 89 Miscellaneous income and losses 90 Investment return where risk in respect of policy or contract re-insured 91 Regulations under section 90(4): supplementary provision 92 Certain BLAGAB trading receipts to count as deemed I - E receipts 93 Minimum profits test 94 Adjustment of I - E profit or excess BLAGAB expenses 95 Use of non-BLAGAB allowable losses to reduce I - E profit 96 Expenses referable to exempt FOTRA profits 97 Application of Chapter 98 Commercial allocation 99 Application of sections 100 and 101 100 Assets wholly or partly matched to BLAGAB liabilities 101 Commercial allocation for disposals not wholly dealt with by section 100 102 Policyholders' rate of tax on policyholders' share of I - E profit 103 Rules for determining policyholders' share of I - E profit 104 Meaning of “the adjusted amount” 105 Meaning of “BLAGAB non-taxable distributions” and “shareholders' share” 106 Deduction for current policyholder tax 107 Expenses or receipts for deferred policyholder tax 108 Meaning of “the closing deferred policyholder tax balance” etc 109 Application of Chapter 110 Allocations to policyholders 111 Dividends and other distributions 112 Index-linked gilt-edged securities 113 Receipts or expenses relating to long-term business fixed capital 114 Application of Chapter 115 Commercial allocation of accounting profit or loss and tax adjustments 116 UK life insurance companies 117 Overseas life insurance companies: rule corresponding to s.116 118 Transfers of business and transfers within a group 119 UK life insurance companies 120 Overseas life insurance companies: rule corresponding to s.119 121 Sections 119 and 120: supplementary 122 Assets forming part of long-term business fixed capital 123 Relief for BLAGAB trade losses against total profits 124 Carry forward of pre-1 April 2017 BLAGAB trade losses against subsequent profits 124A Carry forward of post-1 April 2017 BLAGAB trade losses against subsequent profits 124B Excess carried forward post-1 April 2017 losses: relief against total profits 124C Further carry forward against subsequent profits of post-1 April 2017 loss not fully used 124D Restriction on deductions from BLAGAB trade profits 124E Section 124D: shock losses excluded from the restriction 125 Group relief 126 Restrictions in respect of non-trading deficit 127 No relief against policyholders' share of I - E profit 128 Relief for transferee in respect of transferor's excess BLAGAB expenses 129 Intra-group transfers and demutualisation 130 Transfers between non-group companies: present value of in-force business 130A Re-insurance in the course of transfer of BLAGAB 131 Application of ss. 129 and 130 to transfers of non-BLAGAB long-term business 132 Anti-avoidance 133 Clearance procedure 134 Section 133: supplementary 135 Meaning of “group” of companies 136 Meaning of “BLAGAB trade profit” and “BLAGAB trade loss” 137 Meaning of “the long-term business fixed capital” 138 Meaning of assets that are “matched to” liabilities 139 Minor definitions 140 Abbreviations 141 Index of defined terms, etc 142 Power to amend Part 2 etc 143 Power to amend definition of “insurance business transfer scheme” etc 144 Power to modify provisions applying to overseas life insurance companies 145 Orders and regulations 146 Minor and consequential amendments 147 Transitional provision 148 Commencement 149 Accounting periods straddling 1 January 2013 150 Overview 151 Friendly societies subject to same basic rules as mutual insurers 152 Friendly societies subject to transfer of business rules 153 Exemption for certain BLAGAB or eligible PHI business 154 Meaning of “BLAGAB or eligible PHI business” 155 Meaning of “exempt” BLAGAB or eligible PHI business 156 Societies with no provision for assuring gross sums exceeding £2,000 etc 157 Transfers to friendly societies 158 Transfers from friendly societies to insurance companies etc 159 Exception in case of breach of maximum benefits payable to members 160 Maximum benefits payable to members 161 Section 160: supplementary 162 Section 160: statutory declarations 163 Directions given to old societies 164 Societies registered before 1 June 1973, etc 165 Incorporated friendly societies 166 Transfers from friendly societies to insurance companies etc 167 Transfers between friendly societies 168 Withdrawal of qualifying status 169 Payments by non-qualifying societies treated as qualifying distributions 170 Transfer schemes under s.6(5) of FSA 1992 171 Exemption for unregistered friendly societies 172 Minor definitions 173 Abbreviations 174 Index of defined terms 175 Regulations 176 Consequential amendments 177 Transitional provision 178 Commencement 179 Accounting periods straddling 1 January 2013 180 Controlled foreign companies and foreign permanent establishments 181 Transfers within a group by companies carrying on ring fence trade 182 Supplementary charge 183 Relief in respect of decommissioning expenditure 184 Reduction of supplementary charge for certain oil fields 185 Rates of tobacco products duty 186 Rates of alcoholic liquor duties 187 Repeal of drawback on British compounds and spirits of wine 188 Rates of duty and rebates from 1 August 2012 to 31 December 2012 189 Rebated fuel: private pleasure craft 190 Air passenger duty 191 Machine games duty 192 Amusement machine licence duty 193 Rates of gaming duty 194 Remote gambling: double taxation relief 195 VED rates for light passenger vehicles, light goods vehicles, motorcycles etc 196 Changes to the categorisation of supplies 197 Exempt supplies 198 Supply of goods or services by public bodies 199 Relief from VAT on low value goods: restriction relating to Channel Islands 200 Group supplies using an overseas member 201 Face-value vouchers 202 Power to require notification of arrival of means of transport in UK 203 Non-established taxable persons 204 Administration of VAT 205 Standard rate of landfill tax 206 Landfill sites in Scotland 207 Climate change levy 208 Indexation of rate bands 209 Gifts to charities etc 210 Settled property: effect of certain arrangements 211 The bank levy 212 Prevention of avoidance: subsales etc 213 Rate in respect of residential property where consideration over £2m 214 Higher rate for certain transactions 215 Disclosure of stamp duty land tax avoidance schemes 216 Health service bodies 217 Collective investment schemes: stamp duty and stamp duty reserve tax 218 Agreement between UK and Switzerland 219 Penalties: offshore income etc 220 International military headquarters, EU forces, etc 221 Tax consequences of financial sector regulation 222 Removal of special provision for incapacitated persons and minors 223 Tax advisers: sanctionable conduct 224 Information powers 225 PAYE regulations: information 226 New tax on ownership of high-value residential properties or dwellings 227 Repeals of miscellaneous reliefs etc 228 Interpretation 229 Short title SCHEDULE 1 High income child benefit charge SCHEDULE 2 Profits arising from the exploitation of patents etc SCHEDULE 3 Relief for expenditure on R&D SCHEDULE 4 Real estate investment trusts SCHEDULE 6 Seed enterprise investment scheme SCHEDULE 7 Enterprise investment scheme SCHEDULE 8 Venture capital schemes SCHEDULE 9 Capital allowances for plant and machinery: anti-avoidance SCHEDULE 10 Plant and machinery allowances: fixtures SCHEDULE 11 Expenditure on plant and machinery for use in designated assisted areas SCHEDULE 12 Foreign income and gains SCHEDULE 13 Employer asset-backed pension contributions etc SCHEDULE 14 Gifts to the nation SCHEDULE 15 Relief in respect of gift aid and other income SCHEDULE 16 Part 2: minor and consequential amendments SCHEDULE 17 Part 2: transitional provision SCHEDULE 18 Part 3: consequential amendments SCHEDULE 19 Part 3: transitional provision SCHEDULE 20 Controlled foreign companies and foreign permanent establishments SCHEDULE 21 Relief in respect of decommissioning expenditure SCHEDULE 22 Reduction of supplementary charge for certain oil fields SCHEDULE 23 Air passenger duty SCHEDULE 24 Machine games duty SCHEDULE 25 Remote gambling: double taxation relief SCHEDULE 26 Categorisation of supplies SCHEDULE 27 Anti-forestalling charge to VAT SCHEDULE 28 Non-established taxable persons SCHEDULE 29 Administration of VAT SCHEDULE 30 Climate change levy SCHEDULE 31 Climate change levy: climate change agreements SCHEDULE 32 Climate change levy: supplies subject to the carbon price support rates and combined heat and power stations SCHEDULE 33 Inheritance tax: gifts to charities etc SCHEDULE 34 Bank levy SCHEDULE 35 Stamp duty land tax: higher rate for certain transactions SCHEDULE 36 Agreement between UK and Switzerland SCHEDULE 37 International military headquarters, EU forces, etc SCHEDULE 38 Tax advisers: sanctionable conduct SCHEDULE 39 Repeal of miscellaneous reliefs etc
What to do with it
As published
95 Use of non-BLAGAB allowable losses to reduce I - E profit
(1) This section applies if—
(a) an insurance company has an I - E profit for an accounting period, and
(b) non-BLAGAB allowable losses have accrued to the company that are available for deduction under section 2A(1) of TCGA 1992, as permitted by section 210A(2) and (2A) of that Act, from the shareholders' share of BLAGAB chargeable gains that have accrued to the company.
(2) Those losses may be deducted from those gains in accordance with that provision so as to reduce the amount of the I - E profit for the accounting period to nil but no further.
(3) For the purposes of subsection (1)(a), assume that non-BLAGAB allowable losses cannot be deducted from any BLAGAB chargeable gains (and, accordingly, ignore the effect of this section).
Your wording
Your change, as a redline
95 Use of non-BLAGAB allowable losses to reduce I - E profit
(1) This section applies if—
(a) an insurance company has an I - E profit for an accounting period, and
(b) non-BLAGAB allowable losses have accrued to the company that are available for deduction under section 2A(1) of TCGA 1992, as permitted by section 210A(2) and (2A) of that Act, from the shareholders' share of BLAGAB chargeable gains that have accrued to the company.
(2) Those losses may be deducted from those gains in accordance with that provision so as to reduce the amount of the I - E profit for the accounting period to nil but no further.
(3) For the purposes of subsection (1)(a), assume that non-BLAGAB allowable losses cannot be deducted from any BLAGAB chargeable gains (and, accordingly, ignore the effect of this section).
A proposal here is not law. Support on Solon is evidence that people want the change; the official route says what it takes to make it law.