LA 8BGeneral rules particular to life insurers

1. For the purposes of this subpart, a life insurer’s total tax credit is apportioned between their policyholder base and shareholder base, to the extent to which section EY 4 (Apportionment of income of particular source or nature, and of tax credits) applies and apportions the credit.

2. Despite section LA 3,—

3. a life insurer has an unsatisfied income tax liability to the extent to which—
   1. the tax credit apportioned to their policyholder base is less than their schedular income tax liability for schedular policyholder base income (the policyholder base income tax liability):
   2. the tax credit apportioned to their shareholder base is less than their income tax liability for the tax year, calculating their income tax liability (the shareholder base income tax liability) as if they only had shareholder base income and allowable deductions:
4. the amount of unsatisfied income tax liability is the total of the difference, if any, described in paragraph (a)(i) and the difference, if any, described in paragraph (a)(ii):
5. the amount of unsatisfied income tax liability under paragraph (b) is satisfied when the life insurer pays their terminal tax for the tax year.

6. Despite section LA 4,—

7. if the tax credit apportioned to the policyholder base or the shareholder base is greater than the relevant base income tax liability described in subsection (2)(a)(i) or (ii), the tax credit is used, in the order prescribed in section LA 4(1), to satisfy the relevant base income tax liability. There is no cross-crediting:
8. tax credits not used under paragraph (a) are treated as remaining tax credits referred to in section LA 4(2) and the life insurer must deal with the credits under section LA 5.

Notes

• Section LA 8B: inserted, on 1 July 2010, by section 310(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).