Corporation Tax Act 2010 section 357XD

Insurance: long-term business

Section 357XD provides that any trade which consists of or includes long-term insurance business is treated as an excluded trade for Northern Ireland corporation tax purposes.

• A trade is an "excluded trade" if it involves long-term insurance business
• This applies whether the trade consists entirely of long-term business or merely includes it as part of its activities
• The definition of "long-term business" is taken from the Finance Act 2012, which covers insurance contracts such as life insurance, annuities and permanent health insurance
• Being classified as an excluded trade means the Northern Ireland reduced rate of corporation tax cannot apply to profits from that trade