P
phoenix2019
Member
Hi,
The core reading says with regards to taxation of proprietary insurers -
The minimum profits test does not bite
This happens when the adjusted I-E profit is higher than the adjusted BLAGAB trade profit.
If the adjusted BLAGAB trade profit is less than the I–E profit, the shareholders’ share is taxed at the mainstream corporation tax rate and the balance, the policyholders’ share, is taxed at the 20% rate.
If there are BLAGAB losses in that period, the minimum profit test does not bite. If the minimum profits test does not bite, the company is said to be XSI. (If we are comparing Actual I-E, i.e. without dividend income and BLAGAB Trading Profits less FII i.e. dividend income, then BLAGAB Trading Profits less dividend income is taxed at s/h rate 19% and the Actual BLAGAB I-E @ p/h rate 20%. Is this correct? Also when we say BLAGAB losses, it means BLAGAB Trading Losses, calculated using P-C-E+I-(V1-V0)? And this Negative loss is not carried forward to the next year also. As the minimum profit test didn't bite. Correct?
The core reading says with regards to taxation of proprietary insurers -
The minimum profits test does not bite
This happens when the adjusted I-E profit is higher than the adjusted BLAGAB trade profit.
If the adjusted BLAGAB trade profit is less than the I–E profit, the shareholders’ share is taxed at the mainstream corporation tax rate and the balance, the policyholders’ share, is taxed at the 20% rate.
If there are BLAGAB losses in that period, the minimum profit test does not bite. If the minimum profits test does not bite, the company is said to be XSI. (If we are comparing Actual I-E, i.e. without dividend income and BLAGAB Trading Profits less FII i.e. dividend income, then BLAGAB Trading Profits less dividend income is taxed at s/h rate 19% and the Actual BLAGAB I-E @ p/h rate 20%. Is this correct? Also when we say BLAGAB losses, it means BLAGAB Trading Losses, calculated using P-C-E+I-(V1-V0)? And this Negative loss is not carried forward to the next year also. As the minimum profit test didn't bite. Correct?