Business tax: Life insurance companies
In Sun Life Assurance Company of Canada (UK) Ltd v HMRC (CA – 16 April) a life insurance company submitted computations on the basis that trading losses carried forward from previous years were to be taken into account in determining its Case I profits in respect of its life assurance business within FA 1989 s 89(1) as then in force. The Revenue rejected the computations on the basis that such losses could not be taken into account in the computations and the company appealed. The CA unanimously allowed the appeal. Moses LJ held that for the purposes of FA 1989 s 89(7) as originally enacted the company was entitled to carry forward unused losses from previous years. Furthermore this right was not restricted by the amendments made by FA 2003 s 170 Sch 33 para 7. The Explanatory Notes...
