Taxes Consolidation Act 1997 section 706

Interpretation and general (Part 26)

Section 706 defines key terms used in Part 26 (life assurance companies) and sets out how a life company's business is divided into its component classes for corporation tax purposes.

• Defines "assurance company", "life business", "annuity business", "excluded annuity business", "general annuity business" and "pension business", among other terms used throughout Part 26.
• A life company's business must be divided into three classes: pension business, general annuity business and other life assurance business, each with its own fund, by attributing premiums, income, expenses and liabilities to the appropriate class.
• Pension business comprises premiums payable under Revenue-approved retirement annuity contracts, exempt approved pension scheme contracts, PRSA contracts, PEPP contracts and AE provider scheme contracts.
• A deduction, relief or set-off which reduces a life company's overall profits must be apportioned between each class of business in proportion to each class's share of the company's total taxable profits.