C2C6C5C4C8C9C10C11Part 2 Plant and machinery allowances
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
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
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
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 19
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 35
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 paras. 36, 37
Pt. 2 modified (21.7.2009) by Finance Act 2009 (c. 10), s. 24
Chapter 19 Giving effect to allowances and charges
F4Long-term business
Words in s. 254 heading substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 96
254 Introductory
1
Sections 255 and 256 apply if a company which is carrying on any F7long-term business is entitled or liable to any allowances or charges for a chargeable period in respect of plant or machinery consisting of a management asset.
2
In this Chapter “management asset” has the same meaning as in Chapter 1 of Part 12 (life assurance business).
C12F6255F6Apportionment of allowances and charges
1
This section applies if the long-term business of the company consists of—
a
basic life assurance and general annuity business, and
b
non-BLAGAB long-term business.
2
In that case—
a
any allowance to which the company is entitled for a chargeable period in respect of a management asset, and
b
any charge to which it is liable for a chargeable period in respect of a management asset,
must be apportioned between the businesses in accordance with Chapter 7 of Part 2 of FA 2012.
C1C7256 Different giving effect rules for F5BLAGAB
1
Subsection (2) applies if a company—
a
carries on basic life assurance and general annuity business, and
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 F8for 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 F3company 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.
F113
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F124
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
257 Supplementary
1
Allowances and charges to which sections 255 and 256 apply are not to be given effect otherwise than in accordance with those sections.
2
Subsection (1) does not prevent any allowance which is to be given effect under those sections from being taken into account in any calculation for the purposes of—
F13a
section 93(5) of FA 2012 (minimum profits test), or
b
section 103 of FA 2012 (rules for determining policyholders' share of I - E profit).
F23
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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. 34) (as amended (20.2.2003) by S.I. 2003/333, art. 14)