Corporation Tax Act 2009 section 1164

Entitlement to tax credit

Section 1164 sets out the conditions under which a life assurance company can claim a BLAGAB (basic life assurance and general annuity business) tax credit in relation to contaminated land remediation.

• A company with a qualifying BLAGAB loss in an accounting period is entitled to a BLAGAB tax credit for that period
• The company must make a formal claim to obtain the tax credit, whether for all or part of the qualifying loss
• The amount of the BLAGAB tax credit is calculated in accordance with specific rules set out elsewhere in the legislation
• Where a company claims a BLAGAB tax credit, there are restrictions on the amount of expenses that can be carried forward to future periods