|
|
Chargeable gain reserved for policy holders.
|
37.—(1) The policy holders' share of the life assurance gains shall not be reduced under section 13 (computation of chargeable gains) but corporation tax charged on so much of that share as remains after setting against it the amounts referred to in subsection (2) (c) shall be calculated as if the rate of corporation tax were 26 per cent.
|
|
| |
(2) For the purposes of this section there shall be ascertained the policy holders' share and the remainder (in this section referred to as the residual part) of the life assurance gains and of the relevant reliefs; and—
|
|
| |
(a) the residual part of the relevant reliefs shall be set against so much of the residual part of those gains as remains after reducing it in accordance with section 13; and
|
|
| |
(b) if the residual part of the relevant reliefs exceeds the residual part, as so reduced, of those gains, the excess (or so much of it as does not, together with the policy holders' share of the relevant reliefs, exceed the policy holders' share of those gains) shall be added to the policy holders' share of the relevant reliefs; and—
|
|
| |
(c) the policy holders' share of the relevant reliefs, with any addition made under paragraph (b), shall be set against the policy holders' share of the life assurance gains.
|
|
| |
(3) For the purposes of this section—
|
|
| |
(a) the life assurance gains are such part of the amount which, if the words “reduced by 48 per cent. thereof” in section 13 (1) were deleted, would be included in the company's total profits as is attributable to gains from investments held in connection with the company's life business;
|
|
| |
(b) the relevant reliefs are such of the sums to be deducted from or set off against the company's profits as are deducted from or set off against the life assurance gains;
|
|
| |
(c) (i) where paragraph (a) of section 36 (5) applies to unrelieved income, the amount of the policy holders' share of the life assurance gains or of the relevant reliefs is the full amount; and
|
|
| |
(ii) where paragraph (b) of section 36 (5) applies to unrelieved income, all the life assurance gains and relevant reliefs shall be included in the residual part.
|
