Corporation Tax Act 2009 section 1166

Amount of tax credit

Section 1166 sets out how to calculate the amount of the BLAGAB tax credit that a life assurance company can receive when it has a qualifying BLAGAB loss.

• The BLAGAB tax credit for an accounting period is calculated as 16% of the qualifying BLAGAB loss for that period.
• This is the life assurance company equivalent of the general tax credit rules for other companies with qualifying losses.
• The Treasury has the power to change the 16% rate by order, without the need for primary legislation.
• Any such order changing the rate may include transitional provisions and any other consequential adjustments needed to support the change.