Corporation Tax Act 2009 section 1159

Limitation on relief under Chapter 2

Section 1159 restricts the availability of Chapter 2 deductions so that they cannot be used when calculating the profits of a company's life assurance business under the trading income rules.

• Chapter 2 provides certain deductions (reliefs) related to intangible fixed assets or similar items that companies can normally claim against their profits.
• These Chapter 2 deductions are specifically excluded from the calculation of profits arising from a company's life assurance business.
• This exclusion applies where the profit calculation is carried out under Part 3 of the Corporation Tax Act 2009, which deals with trading income.
• The restriction ensures that life assurance business profits are computed without the benefit of these particular reliefs, reflecting the special tax treatment that applies to life assurance companies.