Ordinary BLAGAB management expenses 
 
109,620 
Step 1 - 
Company's ordinary BLAGAB management 
expenses of the AP  
 
Step 2 less six-sevenths of the acquisition expenses of the period (42,500) 67,120 Spreading of acquisition expenses Capital allowances on management assets Transitional relief for old annuity contracts 169,150 22,500 8,350 
200,000 Step 3 - deemed BLAGAB 
management expenses - FA2012/S78(3) Sum of steps 1 to 3 Deduct relief previously given for expenses repaid in the AP Adjust for BLAGAB trade loss relieved 267,120 (3,600) 0 263,520 Step 4 - total of steps 1-3, adjust for expenses reversed in the AP and BLAGAB trade loss utilised Step 5 - add management expenses brought forward to the sum of step 4 12,500 12,630 
        (A1) 25,130 
288,650 Management expenses brought forward