(1) In this section, "taxed income" means income charged to corporation tax, otherwise than under section 715, and franked investment income.
(2) In the case of a company carrying on general annuity business, the annuities paid by the company, in so far as referable to that business and in 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.
(3) Notwithstanding any other provision of the Corporation Tax Acts, any annuities which under subsection (2) are treated as charges on income of a company (in this subsection referred to as "the first-mentioned company") for an accounting period shall not be allowed as deductions against any profits (whether of the first-mentioned company or of any other company) other than against that part of the total profits arising in that accounting period to the first-mentioned company from its general annuity business.
(4) In computing under section 715 the profits arising to an
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