LAM02030 - I-E overview: Landscape of the legislation in FA12/Part 2: insurance companies carrying on long-term business

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).