Corporation Tax Act 2009 section 1165

Meaning of "qualifying BLAGAB loss"

Section 1165 defines what constitutes a "qualifying BLAGAB loss" for life assurance companies claiming contaminated land remediation relief, and how the amount of that loss is calculated.

• A life assurance company has a qualifying BLAGAB loss in an accounting period if it is entitled to contaminated land relief and has excess BLAGAB expenses carried forward to a future period
• When determining whether excess BLAGAB expenses exist, amounts brought forward from earlier periods that have already been factored into the adjusted BLAGAB management expenses calculation must be excluded
• The qualifying BLAGAB loss is capped at the lower of the excess BLAGAB expenses carried forward or 150% of the qualifying contaminated land expenditure on which relief was obtained
• This provision is the life assurance company equivalent of the general rule in section 1152, adapted to reflect the income less expenses (I minus E) basis used for BLAGAB business