Section 105 | Meaning of “BLAGAB non-taxable distributions” and “shareholders' share”

From legislation.gov.uk

(1)This section explains for the purposes of section 104 what is meant by—

“BLAGAB non-taxable distributions”, and

“the shareholders' share” of BLAGAB non-taxable distributions.

(2)Non-taxable distributions are “BLAGAB” non-taxable distributions if they are referable, in accordance with Chapter 7, to the company's basic life assurance and general annuity business.

(3)The “shareholders' share” of the BLAGAB non-taxable distributions receivable by the company in the accounting period is the relevant proportion of those distributions.

(4)The relevant proportion is—

Formula

\frac{BTP}{BNTD + 1}

where—

BTP is the amount of the BLAGAB trade profit of the company for the accounting period,

BNTD is the amount of the BLAGAB non-taxable distributions receivable by the company in the accounting period, and

I is the total of the amounts given by the calculations required by steps 1 to 3 in section 73 (I - E basis: income referable to BLAGAB) in relation to the company's basic life assurance and general annuity business for the accounting period.

(5)If BTP exceeds BNTD + I, the shareholders' share of the BLAGAB non-taxable distributions receivable by the company in the accounting period is the whole of those distributions.