Finance Act, 1989

Amendment of section 36 (investment income reserved for policy holders) of Corporation Tax Act, 1976.

20.Section 36 of the Corporation Tax Act, 1976 , is hereby amended by the substitution of the following subsection for subsection (2):

“(2) If on the claim the company proves that it has, for any financial year for which the rate of corporation tax exceeds 35 per cent., borne corporation tax in respect of any of the said unrelieved income, the company shall be entitled to repayment of so much of that tax borne by it for that year as is equal to the amount by which—

(a) the corporation tax borne by the company for that year in respect of the part specified in subsection (5) of the said unrelieved income,

exceeds—

(b) the corporation tax which would have been so borne in respect of that part of that income if the rate of corporation tax for that year had been 35 per cent.”