LAM04010 - Calculating 바카라 사이트˜E바카라 사이트™ adjusted BLAGAB management expenses: Introduction and overview FA12/S76
FA12/S73 sets out how to calculate 바카라 사이트˜I-E profit바카라 사이트™ or 바카라 사이트˜excess BLAGAB expenses바카라 사이트™ for an accounting period. It provides for the adjusted BLAGAB management expenses to be deducted at Step 5, or, if negative, added at Step 5.
The expense deduction is broadly calculated on a similar basis to how the expenses of management of a company with investment business are calculated, but with some specific tailoring for BLAGAB. Underwriting related expenses such as claims are excluded and expenses are restricted to what are more broadly accounts based 바카라 사이트˜operational expenses바카라 사이트™. Relief for expenses of management is subject to specific exclusions including adjustment for acquisition expenses which are spread over 7 years. These expenses are generally also spread in the accounts but the basis of accounts spreading will vary between companies.
The steps for calculating adjusted BLAGAB management expenses are detailed in S76 and are summarised below and . Steps 1-5 are explained in more detail in the sections referred to in the table. An example in LAM04500 shows all of steps 1-5 to calculate 바카라 사이트˜adjusted BLAGAB expenses바카라 사이트™
| Steps in S76 FA12 to calculate adjusted BLAGAB management expenses | Guidance and main features |
|---|---|
| Step 1 Calculate ordinary BLAGAB management expenses | LAM04020 FA12/S77, S81 and S82 Ordinary BLAGAB management expenses referable to the accounting period: based on GAAP compliant accounts, must be 바카라 사이트˜expenses of management바카라 사이트™, subject to excluded amounts such as claims, reinsurance premiums, other insurance related items and other insurance related items and other specific exclusions LAM04020 |
| Step 2 Adjust result of step 1 for acquisition expense spreading rules | LAM04110 FA12/S79 spreading of acquisition expenses over 7 years; FA12/S80 meaning of acquisition expenses LAM04100 |
| Step 3 Calculate the amount of any 바카라 사이트˜deemed management expenses바카라 사이트™ | FA12/S78(3) definition of amounts to be treated as if they were management expenses 바카라 사이트“ list includes certain general annuity business annuities , loan relationship surplus deficits carried forward and more. Includes spread acquisition expenses from previous years. LAM04200 |
| Step 4 Calculate the 바카라 사이트˜basic amount바카라 사이트™: (Step 1 adjusted for step 2) + Step 3 less expenses reversed and BLAGAB trade loss relieved | FA12/S78(4) expenses reversed in the accounting period. LAM04300 |
| Ìý | FA12/S78(5) reduces expenses by any BLAGAB trade loss relieved for the accounting period against other trade profits or surrendered as group relief LAM07310 |
| Step 5 Add any amounts carried forward from previous accounting period of excess BLAGAB expenses and minimum profits test amounts | FA12/S73 Step 6 amount of excess BLAGAB expenses added LAM04400 plus any minimum profits test amounts FA212/S93(5)(b) LAM07230 |