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.
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
