Corporation Tax Act 2009 section 1297

Basic life assurance and general annuity business

Section 1297 adapts the employee benefit contribution rules for insurance companies that are taxed under the I minus E (income less expenses) basis in respect of their basic life assurance and general annuity business (BLAGAB).

• This section only applies where the employer is a company subject to the I minus E rules for life assurance business
• Employee benefit contributions are treated as expenses debited in the company's accounts (in accordance with generally accepted accounting practice) when calculating adjusted BLAGAB management expenses under section 73 of Finance Act 2012
• References elsewhere in sections 1290 to 1296 to a "deduction" for employee benefit contributions are read instead as references to an amount constituting ordinary BLAGAB management expenses under section 76 of Finance Act 2012
• This ensures the restriction on timing of relief for employee benefit contributions applies equally to life insurance companies using the I minus E basis, not just companies claiming standard trading deductions