Mutuals - taxation

Discussion in 'SA2' started by Viki2010, Jul 21, 2017.

  1. Viki2010

    Viki2010 Member

    Hi,

    "a mutual would not normally have a taxable non-BLAGAB profit"


    but if a mutual offers and sells products which are subject to non-BLAGAB tax rules for example:
    - pension business or
    - PHI business

    these products have to be taxed based on a formula on trading profit.

    So in this situation how would these products be treated for tax purposed if a mutual does not have taxable non-BLAGAB profits?
     
  2. Lindsay Smitherman

    Lindsay Smitherman ActEd Tutor Staff Member

    Non-BLAGAB business is taxed on trading profit, as you say. But a mutual does not (normally) make any profit, so it would be taxed on a non-BLAGAB profit of zero. Hence a mutual does not have to pay any tax on non-BLAGAB products.
     

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