SolvedLAM02030 | I-E overview: Landscape of the legislation in FA12/Part 2: insurance companies carrying on long-term business
From HM Revenue & Customs · Life Assurance Manual
This section lists the chapters in FA12/Part 2 ‘Insurance companies carrying on long-term business’ and cross refers to the relevant principal section in this manual.
| Chapter | Section | Description | LAM reference |
|---|---|---|---|
| 1 | 55-65 | Outlines structure of Part 2 and defines key terms including categories of business | 01140 -01150 |
| 2 | 66-72 | Charge to Tax on I-E basis: the basic charging provisions | 02040 -02050 |
| 3 | 73-96 | The I-E basis: rules for determining the amount of profit or loss | 03000 -04000 onwards |
| 4 | 97-101 | Apportionment rules I-E – allocation to BLAGAB and non-BLAGAB | 05000 onwards |
| 5 | 102-108 | Policyholder’s rate of tax: determines shareholder - policyholder split of I-E profit and applies equivalent to basic rate of income tax to policyholder share. | 06000 onwards |
| 6 | 109-113 | Trade profits: general trade profit rules for BLAGAB and non-BLAGAB long-term business | 07000 onwards |
| 7 | 114-115 | Trading apportionment rules; .allocates accounting profits, losses and various adjustments between BLAGAB and non-BLAGAB long-term business | 05110 |
| 8 | 116-122 | Long-term business assets: rules for capital gains on transfers between categories of business, intragroup and share pooling rules | 03200 -03230 |
| 9 | 123-127 | Relief for BLAGAB trade losses | 07310 |
| 10 | 128-135 | Transfers of long-term business | 13000 onwards |
| 11 | 136-141 | Definitions: definitions, abbreviations and index of defined terms | various |
| 12 | 142-149 | Supplementary: commencement date, transitional provisions and powers conferred on HM Treasury to amend legislation by way of secondary legislation or by exercise of powers under the Financial Services and Market Act 2000. | various |
Part 3 of FA12 relating to Friendly Societies is not covered in this manual.
There is other life assurance specific legislation outside of FA12, for example, in TCGA92. These provisions are not listed here but referred to in the relevant chapters, starting in Chapter 3 (LAM03300 onwards).