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offset of blagab losses and 50% rule

Y

yogesh167

Member
Hello
Few cases for tax calc for BLAGAB of proprietory co below:
Case 1, I-E= negative 30 and MP=50
Case 2, I-E = 30 and MP=50
Case 3, I-E= 30 and MP= negative 30

Please confirm how much and in which case tax is payable. Also, how much can b carry forward (50%/100%) to offset in next yr profit?

Thanks in advance
 
Case 1: MP test bites, insurer pays tax on MP, policyholder pays no tax.
Case 2: MP test bites, insurer pays tax on MP, policyholder pays no tax.
Case 3: MP floored at 0, so MP = 0. MP test does not bite, insurer pays no tax, policyholder pays tax on full I-E. Insurer carries losses of 30 subject to 50% and £5m rule.

I'd question whether case 1 can actually happen.
 
yogesh167 said:
Hello
Few cases for tax calc for BLAGAB of proprietory co below:
Case 1, I-E= negative 30 and MP=50
Case 2, I-E = 30 and MP=50
Case 3, I-E= 30 and MP= negative 30

Please confirm how much and in which case tax is payable. Also, how much can b carry forward (50%/100%) to offset in next yr profit?

Thanks in advance
Click to expand...

Hi
Case 1: Bring I-E to equal min profit and c/f 80 and tax min profit of 50 at s/h rate.
Case 2: Bring I-E to equal min profit and c/f 20 and tax min profit of 50 at s/h rate.
Case 3: Tax I-E of 30 at p/h rate and set min profit to zero and c/f 30.
Thanks
Em
 
Em Francis said:
Hi
Case 1: Bring I-E to equal min profit and c/f 80 and tax min profit of 50 at s/h rate.
Case 2: Bring I-E to equal min profit and c/f 20 and tax min profit of 50 at s/h rate.
Case 3: Tax I-E of 30 at p/h rate and set min profit to zero and c/f 30.
Thanks
Em
Click to expand...
Ah yes I forgot XSE for case 1 and 2!
 
Em Francis said:
Hi
Case 1: Bring I-E to equal min profit and c/f 80 and tax min profit of 50 at s/h rate.
Case 2: Bring I-E to equal min profit and c/f 20 and tax min profit of 50 at s/h rate.
Case 3: Tax I-E of 30 at p/h rate and set min profit to zero and c/f 30.
Thanks
Em
Click to expand...
Does 50% carry forward loss apply to BLAGAB business as well like Non BLAGAB business?
 
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