Taxes Consolidation Act 1997 section 709

Companies carrying on life business

Section 709 requires that a life assurance business carried on alongside other classes of insurance business is treated as a separate business for corporation tax purposes.

• Where an assurance company carries on life business together with any other class of insurance business, the life business must be treated as a separate business for corporation tax.
• This separation applies regardless of the other class or classes of insurance business carried on by the company.
• When determining whether and to what extent the company has incurred a trading loss on its life business, the investment income of the life assurance fund must be included as part of the profits of that business.
• Investment income for this purpose includes franked investment income of a company resident in the State.

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