In general the calculation of the income (or losses and debits as the case may be) arising from the company's various assets follows the normal rules applicable to all corporate taxpayers. The text that follows considers only those areas where the rules for life insurance companies differ from the norm.
Income from land and BLAGAB
The normal rules for taxing income from land under CTA 2009, ss 202–291 (Pt 4) as a single business1 (see B6.201) are modified for insurance companies2. This reflects the fact that the single business concept does not sit well with the different purposes for which a life insurance company may hold land and real property. As a result a life insurance company is potentially treated as carrying on various property businesses, the precise number depending on its business mix.
In the first instance the exploitation of land held other than for the purposes of its long-term business is treated as a separate business3.
The exploitation of land held for the purposes of its long-term business may give
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