Tax rate use for XSI expense relief

Discussion in 'SA2' started by SYABC, May 2, 2013.

  1. SYABC

    SYABC Member

    Hi

    When a company is XSI, why do we net the expense and investment return by 20% and not 25% (corporate tax rate)?


    Thank you.
     
    Last edited by a moderator: May 2, 2013
    SYABC, May 2, 2013
    #1
  2. Mark Willder

    Mark Willder ActEd Tutor Staff Member

    Profits are taxed at the corporation tax rate, but I-E is taxed at the policyholder rate.

    Best wishes

    Mark
     
    Mark Willder, May 3, 2013
    #2
  3. SYABC

    SYABC Member

    thank you. :)
     
    SYABC, May 3, 2013
    #3

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