LAM03090 | Calculation of ‘I’ Income and chargeable gains: Miscellaneous income and losses: FA12/S74(1)(j): FA12/S89

S74(1)(j) ensures that miscellaneous amounts taken out of charge by FA12/SS68-69 which would normally be chargeable under provisions to which CTA10/S1173 applies are brought into the I-E computation, in so far as they are referable to BLAGAB. An exception is made for non-trading gains on intangible assets chargeable under CTA09/S752.The relevant items are listed in CTA10/S1173.

These amounts are unlikely to be material for a life company. However, life companies should be able to reconcile the income brought into charge to tax to the income included in the statutory accounts of the company. This should enable any material items of income not already taken account of in the tax computation to be identified. Profits on items treated as capital in the accounts may be more difficult to identify but insurers should be able to demonstrate how they have ensured all items in the accounts have been identified and included in the tax computation.

FA12/S89 provides for the offset of miscellaneous losses against miscellaneous profits. Any net excess miscellaneous losses are carried forward to the next accounting period as a deemed BLAGAB management expense for that next period.