Capital Allowances Act 2001

[F1Long-term businessU.K.

270HFApplication of sections 270HG and 270HHU.K.

(1)Sections 270HG and 270HH apply if a company which is carrying on any long-term business is entitled to an allowance under this Part for a chargeable period in respect of a relevant interest in a building or structure consisting of a management asset.

(2)In this section and section 270HG, “management asset” has the same meaning as in Chapter 1 of Part 12 (long-term business).

270HGApportionment of allowancesU.K.

(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)Any allowance under this Part to which the company is entitled 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.

270HHDifferent giving effect rules for BLAGABU.K.

(1)This section applies if a company—

(a)carries on basic life assurance and general annuity business, and

(b)is charged to tax in accordance with the I-E rules in respect of that business.

(2)Any allowance under this Part to which the company is entitled in respect of the basic life assurance and general annuity business is to be given effect by treating it for the purposes of section 76 of FA 2012 as a deemed BLAGAB management expense for the chargeable period in question.

270HISupplementaryU.K.

(1)An allowance to which sections 270HG and 270HH apply is 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—

(a)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).]