Capital Allowances Act 2001 section 257

Supplementary

Section 257 provides supplementary rules ensuring that allowances and charges on management assets of life assurance companies are only given effect through the special apportionment and allocation rules in sections 255 and 256, while preserving their use in certain specific calculations.

• Allowances and charges on management assets of life assurance companies must be given effect only through the special rules in sections 255 and 256 — no other method of giving effect is permitted.
• Despite this restriction, allowances may still be taken into account when performing the minimum profits test under section 93(5) of Finance Act 2012.
• Allowances may also be used in the calculation to determine the policyholders' share of I–E (income less expenses) profit under section 103 of Finance Act 2012.
• This ensures the integrity of the special apportionment regime for life assurance business while allowing allowances to feed into key regulatory and tax calculations that depend on them.