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General annuity business.
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40.—(1) In the case of a company carrying on general annuity business, the annuities paid by the company, so far as referable to that business and so far as they do not exceed the taxed income of the part of the annuity fund so referable, shall be treated as charges on income.
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(2) In computing under section 39 the profits arising to an assurance company from general annuity business—
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(a) taxed income shall not be taken into account as part of those profits, and
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(b) of the annuities paid by the company and referable to general annuity business—
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(i) those which under subsection (1) are treated as charges on income shall not be deductible, and
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(ii) those which are not so treated shall, notwithstanding section 11 (computation of income: application of income tax principles), be deductible.
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(3) In this section “taxed income” means income charged to corporation tax otherwise than under section 39, and franked investment income.
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(4) A company which is not resident in the State but carries on through a branch or agency there any general annuity business shall not be entitled to treat any part of the annuities paid by it which are referable to that business as paid out of profits or gains brought into charge to income tax.
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