LAM17250 - Modifications to the commercial apportionment rules: SI2012/3008

The commercial apportionment rules are modified so that:

• The rules that allocate I minus E items to BLAGAB apply where a friendly society or insurance company carries on tax exempt business as well as BLAGAB (modification to FA12/S97 made by SI2012/3008/REG10).
• Credits or other income, the debits or other losses and expenses in relation to tax exempt business are not taken into account as I minus E items allocated to BLAGAB (modification to FA12/S98 made by SI2012/3008/REG11).
• The rules that allocate trading profit to different categories of business apply where a friendly society or insurance company carries on tax exempt business as well as BLAGAB and/or non-BLAGAB (modification to FA12/S114 and 115 made by SI2012/3008/REG12 and REG13).
• The rules that allocate capital allowances to different categories of business apply where a friendly society or insurance company carries on tax exempt business as well as BLAGAB and/or non-BLAGAB (modification to CAA01/S255 made by SI2012/3008/REG4).
• SI2012/3008/REG4A makes similar changes to CAA01/S270HG in respect of structures and buildings allowances.
• The deduction for transitional relief for pre-1992 general annuity contracts as a deemed BLAGAB management expense is restricted so as not to apply for general annuity contracts that are tax exempt (FA91/SCH7/PARA16 as modified by SI2012/3008/REG3).